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Swiss Franc Technical Outlook

Wednesday, 14 May 2008 14:27:12 GMT

Written by Jamie Saettele, Technical Currency Analyst

The other USD pairs are showing strong signs of pending USD weakness and we have changed our count significantly regarding the USDCHF to reflect that.

We view the rally from .9674 as an A-B-C advance (corrective) but this does not mean that the larger downtrend is back underway (similar to the EURUSD).  The advance may well be the first leg in a larger, more complex upward correction but a sizeable decline is expected regardless (probably into parity).   

STRATEGY: Bearish, against 1.0624, target below 1.0389

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