Free Trial

Approaching Key Resistance

EURO-SWISS TECHS

The cross is on course to test major resistance.

  • On Aug 18, we highlighted developing bullish conditions in EURCHF.
  • Positive trend conditions are currently defined by the moving average structure we apply to a point and figure chart.
  • The chart (see below) highlights a trend reversal that occurred in May, ending a 24-month bear-trend.
  • The cross has most recently, since Aug 27, recovered off a key support defined at 1.0740 and today this move has accelerated, resulting in a breach of resistance at 1.0849, Aug 19 high.
  • The next key test for bulls is 1.0900, the June reaction high on the P&F chart (1.0916 is the intraday high on Jun 5). A break of 1.0900, defined by a 1.0920 print, would reinforce bullish conditions
  • 1.0740 marks the initial support. Major support is at 1.0620.
  • Medium-term trend conditions are improving for bulls.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.