12 May 2015
EUR/CHF downside bias intact – JP Morgan
FXStreet (Barcelona) - Thomas Anthonj, Technical Strategist at JP Morgan, notes that EUR/CHF downside bias remains intact, expecting a gradual extension towards 0.9657 levels.
Key Quotes
“The CHF recovery of the last 3 months seems to have room to extend to 0.9657 (50 %) in EUR/CHF, but hasn’t displayed the classical countertrend setback/rebound (wave B) in between yet, so that we have to keep a close eye on trigger levels for such a rebound.”
“That said, we keep watching key-resistance at 1.0469/72 (daily trend/minor 76.4 %) closely as a decisive hourly close above (i.e. above 1.0490) could function as a trigger for a stronger countertrend rally to the upper T-junction at 1.0678 (int. 76.4 % on higher scale).”
“Below 1.0469/72 though, the prevailing down-bias remains intact and would receive fresh support via a decisive break below 1.0303 (minor 76.4 %) and two consecutive lower daily closes (10pm CET) of the red lagging line below the Ichimoku-cloud (at 1.0299 today).”
Key Quotes
“The CHF recovery of the last 3 months seems to have room to extend to 0.9657 (50 %) in EUR/CHF, but hasn’t displayed the classical countertrend setback/rebound (wave B) in between yet, so that we have to keep a close eye on trigger levels for such a rebound.”
“That said, we keep watching key-resistance at 1.0469/72 (daily trend/minor 76.4 %) closely as a decisive hourly close above (i.e. above 1.0490) could function as a trigger for a stronger countertrend rally to the upper T-junction at 1.0678 (int. 76.4 % on higher scale).”
“Below 1.0469/72 though, the prevailing down-bias remains intact and would receive fresh support via a decisive break below 1.0303 (minor 76.4 %) and two consecutive lower daily closes (10pm CET) of the red lagging line below the Ichimoku-cloud (at 1.0299 today).”