April 29, 2011 – EUR/CHF Repeating a Double Top at the 1.2960 Resistance
Simple Moving Average(SMA) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
Swiss Franc Firms Grip on EUR/CHF…(4/25 Video)
EUR/CHF
Short-Term to Medium Term
- The recent from 1.28 has met resistance at 1.2960. During today’s European session, a double top is forming with a break below the 1.2910 support.
- The RSI in the 1H chart is breaking below 40 invalidating the bullish momentum, and threatening to establish bearish momentum.
- Looking at the 4H chart, we see that this is a repeat of the last time the market tested 1.2960 in forming a double top.
- As the market has been bearish from 1.3250, the bearish outlook is inline with the prevailing trend. Looking at the internal structure of the sideways channel seen in the 4H chart, a wave equality target is at 1.28.
- This scenario is further supported if the market remains below the 1.2910 pivot on a subsequent pullback.
- Below 1.28, the market can remain in consolidation towards 1.2740. Below 1.27, the market targets the record low near 1.24.
- Also note that the swissie is strengthening across the board, and this is not a weak-EUR story, but a strong-CHF story.
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Fan Yang CMT
Chief Technical Strategist
FXTimes
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
he GBP/CHF might finally have topped off after a sharp rally from 1.44 to 1.54 (a 1000-pip swing).
- There is a cluster of 61.8% fibonacci retracement level, psychological resistance at 1.54, as well as a previous support for a double top that was broken (after which, the slide from 1.60 extended to 1.44.
- This volatile pair also has the RSI now failing to sustain a break above 60 – all these are signs of topping.
- The 4H chart also shows the topping action in more detail, and lays out some fibonacci retracement levels as targets for conservative bearish scenarios.
