BUY EUR/CHF @1.4490
The cross has fallen off of a cliff over the past few weeks with the market in a freefall and now looking to test critical psychological barriers by 1.4500. Weekly and daily studies are now highly oversold and the market is in desperate need for some corrective relief. Previous tests of support by 1.4500 have often been met with some very solid buying, and we would look for this barrier to once again act as a formidable support on dips. While we would not rule out the possibility for a break below these barriers on Tuesday, we will happily wait to buy the dip below the figure in anticipation of a major bounce. STRATEGY: BUY @1.4490 FOR AN OPEN OBJECTIVE; STOP 1.4420. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON TUESDAY). POSITION SIZE SHOULD BE 3X EQUITY.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.