EURCHF Daily Commentary and Recommendation | The Mesh Report

EURCHF Daily Commentary and Recommendation

the Mesh Report Staff July 15, 2010 0

Eur/chf is attempting to move out of its sideways trade with the penetration of the daily down trendline at 1.3330.  A close above 1.3400 would argue for a recovery into the 1.3600/50, and potentially the weekly resistance area up at 1.3700/35.

The ability to hold above 1.3250 over the last two weeks has been a positive in attempting to build a base in this cross. And despite the long down trend from the highs at 1.5000 we think further recovery might develop before a test of the 1.3070 might develop. Holding above 1.3350 will add to the idea of at least an intermediate term base to pressure the 1.3500 resistance cluster which remains key to further gains. Above should see 1.3600/50 and potentially that  June low at 1.3735. Closing back below  support at 1.3250 would negate this recovery effort to test the yearly low at 1.3070 and a much more defensive tone.

Strategy: Long at 1.3355 for 1.3650. Add at 1.3440, stop 1.3300.

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