EUR/CHF: Levels, Ranges, Targets

The commonality in currency prices is pressure continues to seriously build to the point serious and sustaining breakout is upon us. EUR/CHF is no different and it will follow the direction of EUR/USD due to its 68% correlation.

From the 1.0883 close, EUR/CHF big breaks to travel higher are located at 1.0896 and 1.0934. Watch EUR/USD for direction as its big break is located just above at 1.1206. Why EUR/CHF pressure inside its price is due because its stuck surrounded by its major break points averages at 1.0896 and 1.0934.

To see any trend or any significant move, the downside gains speed on breaks of 1.0874 and 1.0867 then EUR/CHF targets bottoms at 1.0807 and 1.0809. EUR/CHF sees bottoms by 1.0868, 1.0861, 1.0853, 1.0847, 1.0841, 1.0836, 1.0831, 1.0818 and bottoms 1.0809 and 1.0807.

On the upside 1.0896 break, targets 1.0919, 1.0925, 1.0930, Then big break 1.0934. Then comes 1.0940, 1.0945, 1.0952, 1.0963 and 1.0975. From 1.0952 to 1.0975, severe caution is warranted as EUR/CHF price becomes overbought. To see EUR/CHF trend sustain for the upside then 1.0896 and 1.0934 must break. Further gains in the speed of prices and a further consolidation of the uptrend is seen on a break of 1.1000.

The overall strategy is buy dips for the eventual break of 1.0896 then watch for 1.0934.

Brian Twomey, Inside the Currency Market, btwomey.com.

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