On August 11, 2011 I call for a possible bottom in USD/CHF (see my post here http://theelliottwavesufer.blogspot.com/2011/08/gold-and-usdchf.html )I said that I would try to fine-tune the bottom as we got more evidence. Today the Swiss Centralbank set a minimum target for EUR/CHF at 120. The Swiss Centralbank will defend that point selling whatever CHF needed. That decesion has weakened CHF a great deal and we have seen a "V" shaped bottom, we can also see a inverted S/H/S bottom calling for a move to at least the 94 area.
From an Elliott Wave perspectiv we should now see USD/CHF move higher towards the triangle apex near 105.70. On the way towards 105.70 we will see resistance at 88.50 near the 94 area and finally at 99.57.
Expect a flight out of CHF towards USD, JPY and maybe even some of the minor safe-haven currencies like NOK and SGD. They should do well against EUR.
A snap-shot of the last decline from 117.36 to 70.85.
No comments:
Post a Comment