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Friday, May 27, 2011

EUR/CHF - At important support



EUR/CHF has been in uncharted territory for quite some time now, but as the above monthly chart of EUR/CHF shows we are now testing important support at the Mid-line of the Pitchfork near 122.00. At the same time the Stochastics indicator is in deep oversold area, with a slight positiv divergence and finaly curling slightly upwards, indicating a possible bottoming-process. Looking at the MACD-Indicator that to shows a very clear positiv divergence also indicating a possible bottom being close at hand.


From an Elliott wave perspective the entire decline from June 1992 high at 192.81 is an big A-B-C decline, where wave C will be equal to wave A in length at 121.79, this point has been slightly broken.


However if the Pitchforks Mid-line and 121.79 support is clearly broken, the outlook does not border well for the EUR and the next target will be 109.24.

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