[B]Commentary:[/B] The USDCHF has rallied but remains below 1.2165. A push through 1.2165 would do wonders for the longer term bullish outlook. We had been looking for price to continues lower towards 1.1400 following the break of the 14 month triangle. Thrusts from triangles are terminal, but a triangle that forms for 14 months usually experiences a much more impressive thrust than the one that we saw in the USDCHF.
Either way, the triangle that formed from May 2006 is possibly large wave B in an A-B-C correction that began at the November 2005 peak (1.3285). The thrust lower is wave C of this correction. Still, it seems unlikely that wave C would be this small, but a break above 1.2165 would suggest that this is the case. If 1.1815 is the bottom of wave C, then the USDCHF is in the early stages of a multi-month (possible year +) rally. [B]Strategy:[/B] Flat