Swiss Franc Breakout

Commentary: Cable has broken under the May low at 1.9676, negating the bullish setup and indicating additional bearish potential. More importantly, the pair has dropped under a support line that dates to April 2006. The next potential support level is the 100% extension of 2.0131-1.9676/1.9964 at 1.9509.

A drop under 1.9621 will complete 5 waves down from 1.9964 and give scope to a corrective bounce that can be used to align with the downtrend. Strategy: Look for a drop to a new low to be followed by a 3 wave correction - and an opportunity to align with downtrend