EURCHF – Supported by Marabuzo Line
5th May 2017
…Trading in EURCHF has been volatile over the last 2 months. Our RSI signal made a positive cross of it’s moving average at the end of February. This was confirmed by a spot move through it’s own average the following week.
Since then spot prices fell back below the 21 week line but that was not matched in RSI – a fact that kept our Trend Table bias positive. And last week’s powerful move, 1 1/2 big figures, confirmed that bullish view with gains through the average and the highest EURCHF prices since December.
The market has failed to extend that upside this week. But profit taking has remained limited with the Marabuzo line created last week untested. That point will hold the key, on a closing basis, for EURCHF in the coming weeks. We expect further consolidation and profit taking attempts but with the cross building a fresh base, at higher levels, for further upside. 1.0900, December’s peak, will be the immediate objective with October’s 1.0976 top behind that.
