We’ve finally broken the trendline that has kept gains in check for the second half of 2013.
EUR/CHF daily chart 06 01 2014
While that is a positive for the pair I’m not going to get carried away (as per my title) as we’re likely to slam into the former Nov 2012 support line, although resistance there may be minor in nature. At the moment that comes in at 1.2336. Higher up we have the redrawn 38.2 fib from the 1.2648/1.2166 hi/lo at 1.2350. This is another level that has seen plenty of S&R action last year. From there’s it’s a case of tacking the former highs at 1.2370/77 and then the big 1.24.
If the broken July line starts acting as support then we could indeed see a further push higher. Below there the 1.2280 level will likely hold support also once again.
While it looks exciting for us long term buyers I want to see the action unfold over the next few days to see if we’re going to start a trend or if we’re still just seeing some early year adjustment. I’m a bit top heavy on my positions at 1.23 so the move up is most welcome and I may let some off if we get up to 1.24.