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Tuesday, May 31, 2011

EUR/CHF - Long term bottom in place?

Do we have a long term bottom in place? It's clearly a possibility, but if it's the case, this is a very early call and one should be very carefull and protective at this very early point in time.
The big picture show that we are in a A-B-C correction, where wave C was equal to wave A at 121.79 (the lowest point have been 120.93). We can see a clear five wave decline in wave [C], therefore we could have seen a long term bottom.

Zooming in on the daily chart. We see a clear divergence on both indicatores, which is a warning that a bottom could in place or is close at hand, but to confirm the bottom we need a break above 124.70 and more importantly a break above 126.46.





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