EURO-SWISS: BNP Paribas strategists note that channel support for
euro-Swiss (currently Chf1.5305) comes in at Chf1.5270. "A break of
Chf1.5270 opens downside potential downside potential to Chf1.5080"
they say. BNPP also notes scope for a new wave of risk aversion.
"Reports that NYSE volume remains at the lowest levels of the year have
raised fears that recent equity gains are vulnerable and were more
attributable to cutting of shorts than genuine demand" the strategists
say. Any larger stock sell-off would likely mean increased demand for
low yielding currencies (Swissy) they say. Volume on the Dow Jones
Industrial Average peaked at 9.098bn contracts on March 18 followed by
another peak of 9.12bn on May 7. Low volume was seen on Jan 2 (4.048bn)
and July 10 (3.912bn). In August volume has ranged from 5.4bn contracts
(Aug 10) to 6.8bn contracts (Aug 7)
8/13/2009 10:50:11 AM
EURO-SWISS
BNP Paribas strategists note that for....
Cold outside (and in)
4 hours ago
My personal opinion is that there will be a few levels of upside support between 1.5270 and 1.5080 that will have to be dealt with. I see two areas being potentially problematic. The first is 1.5210 which has been an area of support and resistance on the daily chart over the past couple months, as well as being the 50% Fibonacci retracement of the intervention move on June 24th and the 61.8% Fibo retracement from the recent low on July 9th. The second area is around that recent low of 1.5112. That being said I don't trade Fibonacci or daily support lines in the EUR/CHF, however knowing them can help with entry or exit targets.
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