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Daily Technical Strategist: EURCHF

EURCHF – Recovery Set For The 1.3039 Level.

– With continued recovery higher in progress, risk of further strength targeting the 1.3039 level, its Mar 08'2011 high is now developing. This is coming on the back of a rally started from the 1.2422 level. A violation of the 1.3039 level will open the door for a run at the 1.3205 level, representing its Feb 11’2011 high where a break will resume its short term uptrend and put EURCHF in a position to aim at the 1.3325 level. Further out, resistance is situated at the 1.3657 level, its Nov 19’2010 high. Its daily RSI is bullish and pointing higher suggesting further strength. On the other hand, the risk to it’s the cross’s recovery will be a break back below the 1.2737 level, its Mar 23'2011 low. Below there if seen will set the stage for a further weakness towards the 1.2579 level with a breakthrough that level turning focus to the 1.2402 level, representing its 2010 low. All in all, the cross looks to strengthen further on corrective recovery.

Daily Technical Strategist