EUR and USD against CHF – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, shares the technical outlook and the trade setup for EUR/CHF and USD/CHF.

Key Quotes

“EUR/CHF last week rallied to, tested and held below the 1.0600/70 region – this is the 61.8% retracement of the sell off.”

“It is increasingly likely that 1.0670 (61.8% retracement) will hold the topside, we have minor resistance at 1.0530, and will tighten stops on shorts to protect profit.”

“We have minor support at 1.0355 – below here will leave attention on support at 1.0222 then 1.0080.”

“Above 1.0670 will introduce scope to 1.1003, 1.1255.”

“Trade: short 1.0612, stops 1.0535. Exit 1.0080.”

“USD/CHF is side lined below the .9360 October 2014 low.”

“The Elliott wave count on the daily chart is suggesting that the .9347 high was the end of an ‘a-b-c’ correction. This suggests that we should see a slide back to the .9080/00 zone and possibly .8835/.8767 and this guards the 0.8385 January 16th low.”

“Above .9360 will allow for gains towards the .9608/78.6% retracement of the sharp sell off.”

“Current Position: Holding tiny shorts .9264 Recommended Trade: stops .9360. Exit .9000”