EUR/CHF Springs to Life from Key 1.5000 Support

The FX Trader’s view - In recent weeks EUR/CHF price action has been lacklustre, an earlier bull signal looking to be premature. But underwater s/term bulls, having sailed close to the wind just above 1.5000 key support for a while now, have abruptly changed tack, with a course set for higher once more.

• WEEKLY CHART: The slip back from 1.5447 Mar high has been viewed as corrective/temporary, with another bull leg expected in due course. Price action refused to break below the key 1.5000 area. First resistance from the falling resistance line has now been violated.
• DAILY CHART: It is interesting how well support around 1.5000 has continued to be effective – Wed’s surge finally validates our recent bullish stance. With recent 1.5230s highs now breached our initial focus is on the 1.5447 16-Mar high and 1.5575 76.4% level. But then note the higher 1.5881/83 (the next 76.4% level and 15-Dec high). This is a key resistance/ target area, with an equality target nearby too, 1.5875 (the 1.4576-1.5447 upleg extended from 1.5004 18-Jun low). A bull channel top projection also currently runs through here. First support now offered by those old 1.5230s highs, while 1.5000 continues to hold the key to an unfolding bull scenario.
• In the FX Trading Guide prior longs established above 1.5178 (a previous technical level) were patiently holding stops just below 1.4991 20-Feb high, targeting 1.5440 or 1.5550/75 for partial profits. Stops may then raise to below 1.5230, balances targeting the 1.5800/50 area.

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