EUR/CHF Analysis – Where Are Our Signal Headed

Posted Monday, December 12, 2016 by
Skerdian Meta • 2 min read

We looked at the GBP and USD/JPY today and shared out trade ideas for these pairs, but we don´t have any open forex signals in those forex pairs. We do have two open EUR/CHF signals, so I think that we better have a look at this pair since it has started moving. 

The 20 SMA is a good place to look for another buy opportunity

As you can see from the H1 EUR/CHF chart above, the price now is around the opening level. Fundamentally, the picture seems sort of bullish; the sellers had a go at the downside, but the 1.0720 level held its ground on Friday evening and it did so again early this morning. So, we can say that the support down there is strong enough, which has discouraged EUR/CHF sellers.

Technically though, the picture doesn´t seem so bright. There´s a number of moving averages between 1.0770 and 1.08. The stochastic and RSI indicators are already overbought in the H1 forex chart. Therefore, the upside seems limited until a retrace takes place which might take the price to the 20 SMA at 1.0750, before the next leg higher. If you want to buy this pair again, wait for a confirmation when the price gets there, if it does. It might be a doji or pin candlestick or stochastic becoming oversold. 

The H4 chart is pointing up

Switching to the H4 chart, EUR/CHF technical analysis here paints a much brighter picture. Both Stochastic and RSI are heading up, but a number of moving averages are again waiting around the 1.08 level. This will be a tough level to crack, but if the price manages to move above it then it opens the door to 1.09. So, the overall picture in both timeframe charts is slightly bullish, but we might have to tighten our belts for a possible retrace before the next feast. By the way, it will take time for our long term EUR/CHF signal to be 100+ pips in green, but it looks good right now. 


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