Forex Flash: USD/CHF could visit 1.0630/1.0676 long-term – Danske Bank

FXstreet.com (Barcelona) - The cross, a benchmark of a safe-haven, has been climbing since the August 2011 lows below 0.7200 to the actual congestion pattern, between July highs in the proximities of 0.9970 and early August lows around 0.9660, fueled by worsening conditions in the euro zone and the consequent rise in the risk aversion.

Chief Analyst A.L.Rasmussen at Danske Bank, recommends buying/holding the cross for long term profits in the 1.0630/1.0676 region. "So far, the recovery has reached 0.9972 and a pullback from this point has taken the form of a positive descending wedge. Clearance off 0.9809 would confirm the pattern is complete for initial gains, through 0.9972, to challenge 1.0067& Through this tough barrier it will then accelerate the major long-term recovery cycle towards 1.0630/1.0667, where the 76.4% retracement level of the 1.1730 drop merges with the 12 July 2010 high". Momentum and moving average indicators support this bullish projection.