EUR/CHF has sold off into new lows and is approaching the psychologically important 1.20 support. The market looks set to reach the base of its 3 year down channel at 1.1950/65. While we would allow for this to hold the initial test, we are not hopeful about reversal here. Slightly longer term we have point and figure targets at 1.1790, however using the 1.24-1.32 consolidation to predict lower would imply losses to 1.1600.
USD/CHF charted an outside day to the downside, which implies that the fledgling correction seen over the past week is already over. This suggests we revisit the .8327 recent low. Ideally we would allow for this to again hold and while above here we would allow for recovery very near term to the .8554 May low.
EUR/USD despite the rebound seen yesterday and today, we maintain our bearish bias. The market last week rejected the 78.6% Fibonacci retracement at 1.4732, and sold off. We view this as the market charting an interim top at 1.4697 and consider the short term risk has now shifted to the downside.
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