As just mentioned, EUR/USD can be confirmed as having broken daily downtrend resistance at approximately 1.2200 and is contending with .618 Fib resistance from a retracement as well as a projection. Price should hold there for now and turn south to retest that orange, daily downtrend line at 1.2200-25 before buyers regain control for a move towards the top end of the uptrend channel at .707 retracement at 1.2310.

Measured move AB=CD into Fib zone resistance at 1.2250 area should temporarily cap the buying setting up a retracement to 1.2200-25 before the buyers step back into the tip for a push towards the 3-handle. Look to scale in longs from 1.2200-25 with stops under 1.2170 for a retest of the highs on a partial positions and ultimately a push towards 1.2300 over the next 24 hours.

Swissy has not seen the buying interest that Euro has mainly due to the heavy Euro cross buying interest. Regardless, USD/CHF has broken the 2006 uptrend support at 1.2975 and is targeting the multi-year uptrend support at 1.2820.

Look to sell into a USD/CHF retracement towards 1.2975-1.3000 with stops above 1.3030 for a retest of 1.2900 on a partial position and a move lower to multi-year trend support at 1.2815 on remaining positions.

You will notice the stops on the two trades above are abnormally large for us however necessary as the ranges are beginning to show signs of conclusion and we need to allow for wiggle room. Please position size as necessary to allow for larger stops and potentially larger rewards.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.