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Short-Term Technical Outlook: EUR/CHF

Tuesday, 11 November 2008 05:05:43 GMT

Written by David Song, Currency Analyst

The EUR/CHF reached a high of 1.6187 in September before slipping to a low of 1.4299 on 10/27, and the lack of risk appetite continues to favors a bullish outlook for the Swiss franc.

Currency Pair: EUR/CHF
Chart: 60 Min Charts
Short-Term Bias: Bearish

Analysis

EURCHF1_11-11

The EUR/CHF reached a high of 1.6187 in September before slipping to a low of 1.4299 on 10/27, and the lack of risk appetite continues to favors a bullish outlook for the Swiss franc. Last week, we saw the pair bounce back from its lows in October to break above the 38.2% Fib retracement level, but it looks to be running out of steam, and should continue to hold below the 50.0% Fib level. The lack of momentum suggests that the pair will cross below the 120 SMA over the next few hours, and we may see the pair work its way towards the October lows again over the week. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.

To contact the author of this article, please email: dsong@fxcm.com

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