After a technical retracement the EUR/CHF should resume its sharp downtrend.
In early February the EUR/CHF collapsed at the 200-day moving average February’s move took the pair from 1.3200 to 1.2700.
The EUR/CHF has since undergone a technical retracement of the February move, climbing as high as the 38.2% Fibonacci level from the February downtrend at 1.2900 where the pair ran into resistance and the bearish trend resumed.
A technical retracement actually reinforces a strong trending environment and signals further moves in the direction of the trend. As such, following a breach of the 1.2700 support level, we may expect the EUR/CHF to now target the 2010 low at 1.2400.
Resistance is found at yesterday’s high of 1.2900, followed by 1.2970, and the falling trend line off of the October and February highs which comes in today at 1.3100.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
