Back
3 Apr 2015
The prospects for the Swiss franc remains neutral – JP Morgan
FXStreet (Edinburgh) - In the view of analysts at JP Morgan, the prospects for the Swiss bank remain neutral.
Key Quotes
“The CHF recovery of the last 4 weeks hasn’t provided the final evidence yet that a much broader recovery might be looming”.
“That said and in order to jump scales in favor of a much deeper 2nd wave setback to 0.9775 or to 0.9657 (pivot/int. 50 %) in EUR/CHF , key-support at 1.0418 (minor 38.2 %) would have to be broken decisively”.
“As long as the latter is defended, another CHF sell-off might be missing (wave 5), which could stretch out to 1.1249 (int. 76.4 %)”.
“The same applies for USD/CHF where it would take breaks below 0.9508 and 0.9422 (minor 38.2 %/200 DMA) to negate the temporary 4th wave setback scenario”.
“Below the latter we'd see 0.9745 (50 % on higher scale) in focus, whereas the defense of 0.9508/0.9422 would leave the upside open for a missing 5th wave advance towards the pre-SNB high at 1.0241”.
Key Quotes
“The CHF recovery of the last 4 weeks hasn’t provided the final evidence yet that a much broader recovery might be looming”.
“That said and in order to jump scales in favor of a much deeper 2nd wave setback to 0.9775 or to 0.9657 (pivot/int. 50 %) in EUR/CHF , key-support at 1.0418 (minor 38.2 %) would have to be broken decisively”.
“As long as the latter is defended, another CHF sell-off might be missing (wave 5), which could stretch out to 1.1249 (int. 76.4 %)”.
“The same applies for USD/CHF where it would take breaks below 0.9508 and 0.9422 (minor 38.2 %/200 DMA) to negate the temporary 4th wave setback scenario”.
“Below the latter we'd see 0.9745 (50 % on higher scale) in focus, whereas the defense of 0.9508/0.9422 would leave the upside open for a missing 5th wave advance towards the pre-SNB high at 1.0241”.