A well needed update to the EURCHF chart after previously tracking and failing to clear the ABC extension targets at 1.065x. For those following the previous charts before we broke down:
The yearly flows and expectations for 2020 will large be divided in a tale of two halves and as a result forecasts in the cross reflect that:
For the initial phase, we are tracking a test of the important 1.12x and 1.13x highs which will come via a zig-zag of 'orderly' Brexit triggering those who hedged in CHF to unwind and therefore CHF outflows, twinned with EUR funded inflows. This is the A' part in the sequence.
After clearing 1.12x and 1.13x and with a lot of work still to be done on the ladder, we transition into the second phase where I will look for a meaningful retrace to around the current lows at 1.092x which will provide the B'. These two phases will cover the majority of 2020 flows before completing a fresh breakup above 1.13xx in 2021 with a completed ABC sequence.
Thanks for keeping the support coming with likes and jumping into the comments with your views and charts!
The yearly flows and expectations for 2020 will large be divided in a tale of two halves and as a result forecasts in the cross reflect that:
For the initial phase, we are tracking a test of the important 1.12x and 1.13x highs which will come via a zig-zag of 'orderly' Brexit triggering those who hedged in CHF to unwind and therefore CHF outflows, twinned with EUR funded inflows. This is the A' part in the sequence.
After clearing 1.12x and 1.13x and with a lot of work still to be done on the ladder, we transition into the second phase where I will look for a meaningful retrace to around the current lows at 1.092x which will provide the B'. These two phases will cover the majority of 2020 flows before completing a fresh breakup above 1.13xx in 2021 with a completed ABC sequence.
Thanks for keeping the support coming with likes and jumping into the comments with your views and charts!
