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Swiss Franc Technical Outlook

Thursday, 09 October 2008 14:48:01 GMT

Written by Jamie Saettele, Senior Currency Strategist

“The USDCHF exceeded 1.1422.  The advance is in 5 waves (as is the EURUSD decline from 1.4871) so a 3 wave correction is expected.  Initial support is at 1.1215.” 

The USDCHF has declined in 3 waves and reached the former 4th wave, which is always the first potential support area.  Subjectively, I favor the idea that the drop is the first leg of a larger correction.

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