EURCHF – Looking for the CD leg higher

Ian Coleman FXStreet

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:

Bespoke support is located at 1.1470.
Corrective formations are normally in three waves
Channel support at 1.1460
DeMark is close to an exhaustion count (13) on the daily chart

Action:

We look to Buy at: 1.1475
Stop: 1.1400
Targets: 1.1680 and 1.1740

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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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