- WEEKLY CHART: The break below Dec-04 1.3667 high and the bull channel base projection happened simultaneously, emphasising the loss in medium term momentum. Recently the losses have stabilised close to the congestion lows from 2005. Any recovery will be assumed to be relatively short-lived.
- DAILY CHART: This chart has found a temporary floor, unlike its USD/CHF counterpart which has recently continued extending its ceiling. The 2.618 swing off prior 1.3879-1.4865 rally (1.2285) has provided useful support (note this 2.618 level ‘crops’ up in today’s Soybean Update too). An initial bull sign has been given by the close above the small bear channel top projection – bulls now need a break/close through 1.3294 30-Oct high for further reassurance. That said, note potentially strong resistance at 1.3745/1.3879, 38,2 % recovery level (our minimum target) / 11-Sep low. This is the next major hurdle on the upside.
Re. USD/CHF Update 13/11/08 – this market has pushed up further than expected, but the main assumption, that a final (up) wave is in process, remains valid. [For the complete and illustrated version of this and future Updates be sure to sign up at www.sevendaysahead.com]
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