Tuesday, May 29, 2007



Daily EURCHF chart - several things to keep the attention to the downside:

> the original trendline was already broken and upward momentum is slowing -- price is near the Channel bottom around 1.6485 - will wait to see a confirmed break of the line (close under the line and a lower open)

> we have a Shooting star pattern signalling the recent reversal

> RSI is showing Bearish divergence and looking down

> Directional Movement (9 period) is the last indicator to confirm the slide here

> 20 day MA & 34 day EMA are almost flat- prone to turn downwards..

>>> Most obvious Target is the 1.6300 level - - 50% Fibonacci retracement of the recent upmove (1.5930 - 1.65..) & also a previous Top

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