EUR/CHF – Another Buying Opportunity?
Skerdian Meta • 2 min read
Yesterday we woke up with a winning forex signal. Our buy EUR/CHF signal, which we opened at 1.0719, hit take profit yesterday morning which was the second winning signal in this forex pair in a few days. We relied on the 1.07 support level (give or take a dozen of pips) which has been rock solid and it didn´t let us down this time either.
We have made quite a few pips trading this forex pair against this level in the last month or so and now the price is approaching it again. The 1.0760 level provided resistance last evening but the EUR/CHF buyers had another go at it this morning. They failed once again and looks like they have given up for the time being.
Now we´re seeing a retrace lower, so we have to decide whether to open another buy forex signal. These levels are pretty luring, but I prefer to enter a bit lower, maybe in the 1.07 area. That´s because the support area in this pair stretches all the way down to 1.0680, so waiting for a better entry price lower will give us a stop loss level below 1.0680.
I think we must at least wait for the 50 SMA in yellow.
That said, the price might reverse as I type, but judging by the EUR/USD decline and considering the resilience in CHF/USD during the last several hours, I think that we might get a better entry price lower. This pair seems oversold on the H1 forex chart, but the H4 EUR/CHF chart paints another picture.
There´s still plenty of room until the stochastic and RSI indicators become oversold, which means that we´re heading further below, although it might take some time. A lot of patience is required in this business and this is one of those times, but better safe than sorry.
So, I´m waiting to get in long on this pair about 20 pips lower, but if you think this is the end of the retrace and your preferred risk/reward ratio allows it, then you might as well buy EUR/CHF right here. It´s all about risk appetite and money management.
By the way, we offered a similar trade idea for EUR/USD yesterday, guys. We didn´t get that trade since it didn´t suit our risk appetite, but if you did, then you might have made about 40 pips. So, this is another trade idea from us if you´re willing to take it. But for us, it will turn into a trade when the price moves another 20 pips lower.