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Trade Desk Thoughts: European Pair Review

Published 12/31/2000, 07:00 PM
Updated 01/27/2010, 08:11 AM
EUR/CHF
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Trade Desk Thoughts:


European Pair Review

Euro:
The four hour trend in is a tight channel, on the short side of things. The 1.4000 area is a major support level at the weekly chart 38.2% Fibonacci level. The 50% level at 1.3730 comes next. A near-term linear trend line from 1.4425 holds as resistance at 1.4100. Favor a straddle.

4 Hour Closed Candle
Long: Close above 1.4150
Short: Hold below 1.3980
Swing Point: 1.4100

Technical Waves:
Elliot Wave Charts: A Long correction looks to have completed. A Short trend towards 1.3900 is expected.

Cable:
The trend on the 4 hour chart is long, as the pair trades at the 200 SMA at 1.6200. A linear trend-line from 1.6470 will hold as resistance around the same area. Long plays really need a break of 1.6350. Anything being considered short needs to see a 4 hour close beneath 1.6000. Favor a straddle.

4 Hour Closed Candle
Long: Close above 1.6350
Short: Hold below 1.6000
Swing Point: 1.6165

Technical Waves:
Elliot Wave Charts: An impulse down-trend is in progress. Corrective wave was finished at 1.6260. Near-term target 1.6000.

Swissy:
The 4 hour trend is long, as things test the 1.0500 area. Just above that resistance area is the 200 day SMA which the pair has not traded above since May 2009. The technical view is for the swissy to be able to push above this level. Favor the long side of market, or look to a long EUR/CHF play.

4 Hour Closed Candle
Long: Close above 1.0500
Short: Hold below 1.0390
Swing Point: 1.0445

Technical Waves:
Elliot Wave Charts: A Short correction completed at 1.0365. A Long move towards 1.0550 is expected.

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