More EUR/CHF Recovery Needed to Cast Bear Doubts

The FX Specialist view - The chart of the EUR/CHF cross remains weak, with previous recovery attempts only proving short-lived affairs. At present the current bounce is relatively unexciting, but we are looking at certain overhead levels that, if breached, could signal better bull interest.

• WEEKLY CHART So far, following earlier violation of the long term bear channel base, a shorter term channel base has contained the downmove. At this stage note potential resistance around 1.3220, the 23.6% recovery of the downmove from 1.5881 Dec-08 high. Now see Daily chart...
• DAILY CHART: The current recovery is approaching resistance offered by the 1.3225 12-Nov low, which coincides nicely with the 23.6% on the Weekly chart. This represents an important barrier, but probably more key is the somewhat higher channel top projection at 1.3545 currently. A break above this latter could see a subsequent pullback become temporary, prior to another bull leg, with a medium term recovery unfolding. For now, however, there is no indication that bear fatigue is setting in.

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