Although the cross is now consolidating following its recovery rally started from the 1.0069 level to the 1.1556 level, it continues to retain that recovery tone. We expect its present price consolidation to end and trigger further strength towards the 1.1829 level, its July 22'2011 high with a turn above there allowing for further strength towards the 1.2178 level, its July 08'2011 low. Further out, resistance resides at the 1.2344 level, its July 04'2011 high. On the downside, our alternative scenario is a return below the 1.1094 level, its Aug 12'2011 low. This set the stage for further weakness towards the 1.0685 level and ultimately the 1.0069 level, its 2011 low. All in all, while EURCHF remains biased to the upside in the near term on correction, its overall long term trend points lower.

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