EUR/CHF - A break above 1.2350 will open up the upside.

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EUR/CHF:

 

First lets start with the long term picture. We saw an important long term bottom at 1.0067 in August 2011. I'm looking for a major correction of the five wave decline we have seen from the high of 3.0525 in 1976. The first target for this correction will be the top of wave 4 of one lessor degree at 1.6828.

 

Summing in on the rally from the 1.0067 low, I think we are close to see a break above the resistance-line from July 2013 at 1.2350. A close above this resistance-line will call for a new rally higher towards 1.4416. On the way towards 1.4416 we will find strong resistance at 1.3213.

 

 

Short term I would like to see support at 1.2277 protect the downside for the break above 1.2350, which would call for a continuation higher towards 1.2468 and 1.2649 on the way higher.