USD/CHF has again sold off and remains on course for the base of an 8 year channel at .8364. Note with a Fibonacci extension, point and figure count and the base of the channel all coming in circa .8400-.8364, we are alert to the idea that we will see reversal here.
EUR/CHF has sold off aggressively, it has charted an outside day to the downside and this implies unfinished business lower. Initial resistance lies at 1.2320/1.2400 – the March and December lows but key resistance remains the downtrend at 1.2529. While capped here a negative bias will remain entrenched. Target is 1.2025/00, this is the base of the 4 year down channel and psychological support
EUR/USD has reached the 50% retracement at 1.4454, which has so far held, we would allow for some consolidation. We remain unable to rule out a deeper corrective phase to potentially 1.4568/1.4730 (61.8% and 78.6% retracements). This is regarded as the last defense for 1.4940.
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