Guest Commentary: MarketVisionTV - How Long and How Far Will The 1.20 Peg Survive?
There are 3 things we believe strongly about Euro Swiss. First is that it will eventually break the 1.20 peg. The second is that it needs alot more consolidation first. Thirdly that its doing in the decline what it did in the rally...repeating the same pattern over and over again on a smaller scale...retracing to the previous minor corrective high then making a marginal new low.
So having faded the 1.2140-45 region (albeit on spoof prices) it is now breaking down to the 1.2030-35 low in what may now have be a declining wedge to maintain this same repeating pattern. So although 1.2030 should be enough to prompt a recovery to the previous minor 1.2100-10 high. as this fades then we expect a stronger test of the 1.2000 peg to end the near term decline. So we are now looking to buy...expecting the 1.2000-30 base to hold for a recovery through 1.2105 and 1.2145 to the 1.2200-45 region. Loss of 1.2000 will clearly threaten early acceleration.
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By Ed Matts, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.