Now that EURCHF got a little boost out of the incredibly small range in the low 1.40’s, it has been repelled by resistance at 1.4309. Looking at the hourly chart one can see the pair has made four attempts to scale this price. After the last overnight try it has sulked back to 1.4188 (so far). My suspicion is there will be another attempt. Often, after several attempts, a pair will make it through. If it does so, then there is additional resistance at 1.4365 and 1.4466. However, given the sentiment against the Euro, even intervention may not be able to keep this pair up.
Yesterday shows what intervention looks like. EURCHF went from 1.4006 to 1.4207 within an hour and within two hours of that gained another 102 pips to 1.4309. This is why you want tight stops.
Here’s the hourly chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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