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EUR/CHF continued to be bounded in range of 1.2031/2127 last week, engaged in sideway trading. As noted before, a short term bottom is in place at 1.2031 but there is no scope for a rebound yet 1.2132 resistance intact. EUR/CHF would possibly engage in range trading between 1.2 and 1.2132 in the near term. On the downside, we'd maintain that SNB should remain determined to defend the 1.2 floor in the cross. Hence, any downside should be contained there. EUR/CHF remains in a "buy zone". But the timing of rebound could be until confirmation of the next SNB president and when markets revive speculation of SNB raising the 1.2 floor. When that happens, EUR/CHF would likely be pushed through 1.2132 resistance back towards 1.25 level.
In the long term picture,after SNB intervention, the long term down trend in EUR/CHF is put into a halt at 1.0061. While the whole rebound from 1.0061 was strong, there is no scope of trend reversal yet. And, we'd expect strong resistance inside 1.2399/3243 resistance zone to limit upside unless there is a drastic turn in risk sentiments. But in any case, downside should be contained above 1.2, the floor set by SNB.
22/02/2012
exit long eurchf
22/02/2012
exit long eurchf
Exit long eurchf
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