Today's FX outlook for Swiss Franc and Euro/GBP
Thursday, February 09, 2012
by Carol Harmer of Charmer Charts
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$CHF had a very narrow range yesterday and once more held the 9120/9110 support. If we can maintain above this support we have a good chance of trading higher to 9165/70 initially but with greater potential for 9205.
Here we would be taking profits on longs and attempting small shorts once more.. We would keep stops on shorts on a break of 9230.
Now if we see this lose 9110 we would be looking at the 50% med term fib level of 9080. We would advise any sellers once more to cover to here.
We would expect this Fib level to at least hold the downside for the first attempt thus we are buyers on weakness to here looking for the market to hold and trade higher… Below 9065 and we see 9010 quite quickly.
EUR/GBP soared to the 84000 and 84100 targets.
We now face very tough trend line resistance at 84048 and this may be enough to stop the short term rally. Cover longs here and attempt shorts up to 84219. This is likely to see the market top out st this stage. Only a sustained break above here keeps the bulls in control and we could expect to see a test of 84545 to follow.
The 55 day moving average is at 83857 so back below here puts the market under pressure to test 83694 and possibly 83494. If we fall any further look for a buying opportunity at 83332.
Charmercharts.com
Carol Harmer has over 30 years experience of analysing and trading the world’s markets and is undoubtedly one of the most respected technical analysts in the world today.
Her career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable.
This soon led to a position as Senior Technical Analyst for Midland Bank.
She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse. Carol is also one of the first T/A's from a bank to join the STA (The Society of Technical Analysts) in the mid 80's and has trained and worked with some of the UK’s leading technical analysts.
In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.
She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.
