EURCHF – Looking for the CD leg higher
|Technical
Monthly: EURCHF has staged a strong recovery since posting a low in January 2015. The rally has stalled, and a reversal posted from levels close to the 78.6% Fibonacci pullback of 1.2010. Swing low (previous support) is located at 1.1447. Marabuzo resistance (mid-point from the open and close) is located at 1.1745.
Daily: We look for a bearish 5 wave Elliott wave count to be completed at 1.3668. Immediate price action to the upside has been mixed and volatile, common in corrective formations. Trend line resistance, and a possible right shoulder in a bearish Head and Shoulders formation, is located at 1.1720. Bespoke resistance is located at 1.1685. The 50% pullback level is located at 1.1685 (from 1.2001-1.1371). Four reasons why further losses should be limited:
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Bespoke support is located at 1.1470.
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Corrective formations are normally in three waves
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Channel support at 1.1460
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DeMark is close to an exhaustion count (13) on the daily chart
Action:
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We look to Buy at: 1.1475
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Stop: 1.1400
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Targets: 1.1680 and 1.1740
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