EUR/CHF 1H Chart: Pair tests historic support

19 ביוני 2018

The Euro has been ranging against the Swiss Franc since late May. This movement sideways began when the pair breached the prevailing senior channel. Its bottom line has provided resistance, while support is being set by the 38.20% Fibo retracement. If looking at the previous price movement, it is apparent that this Fibo level has provided strong support on several occasions.

Technical indicators still flash bearish signals; thus, it might be possible that the pair edges even lower and targets its nine-month low of 1.14 during the following sessions. This scenario should be considered if the aforementioned 38.20% Fibo is breached to the downside.

Conversely, a failure to do so is likely to be followed by a surge up to the breached senior channel and the 23.60% Fibo circa 1.17.

15 באוג׳ 2018

הערה

The EUR/CHF bounced off the senior channel mid-July and began edging lower in a flat descending channel. Strong outside pressure, however, overtook the market last week and has since pushed the rate considerably lower.

The newly-drawn channel down demonstrates that the strong bearish momentum which guided the pair in the short term has allayed considerably. As a result, the Euro began trading sideways and consequently breached this channel to the upside; this is a bullish signal.

Technical indicators are likewise showing bullish signals. However, traders still need to wait for a confirmation—a breakout from the 55-hour SMA—to take the long position in the pair.

A possible upside target is the senior channel and the 200-period (4H) SMA circa 1.16.