Barclays: EUR/CHF May Break 1.40
March 22, 2010 at 13:14 UTC || By Forex Playmaker
Barclays is predicting new all times lows for the EUR/CHF, according to a Bloomberg report:
The euro may drop past the all-time low to 1.40 Swiss francs on the “inability” of the Swiss National Bank to halt its currency’s gain, according to Barclays Plc, citing technical indicators.
The 16-nation currency may fall to that “psychologically important” level if it weakens past “long-term trend-line support,” Barclays researchers including Phil Roberts, London- based chief European technical analyst, wrote in a note today. The euro reached a record low 1.4315 francs on Oct. 27, 2008, according to Bloomberg data.
“There is no letup for the euro against the franc, which continues to slide,” the analysts wrote. “Long-term charts are peppered with spike lows, and following the authorities’ inability to prevent this move, we suspect the euro is setting up for just such a downside spike” versus the franc.
As noted in previous posts, the EUR/CHF is poised for further, dramatic depreciation. In addition to the SNB relaxing its intervention efforts aimed at depressing the franc, which proved futile in the past, the euro remains crippled by growing concerns over the Greek debt crisis.
As Barclays correctly points out, the view from the charts is quite convincing. Each of the major timeframes reveals a clear downtrend for the EUR/CHF. On that rare occasion when the technicals and fundamentals are perfectly aligned, the trade speaks for itself.
Full Article: Euro May Fall Past Record to 1.40 Francs: Technical Analysis
Comments
One Response to “Barclays: EUR/CHF May Break 1.40”Trackbacks
Check out what others are saying about this post...[...] latest forecast for the EUR/CHF follows a similar pronouncement by Barclays, which yesterday issued a target of 1.4000 for the currency [...]