If you follow our forex signal, you must have received the notification for EUR/CHF. We opened this forex signal a few minutes ago, and it is already in profit. What is the chart setup that made us go short on this forex pair?

The retrace up is over, now we’re heading lower.

The chart above is the hourly EUR/CHF chart. It’s not difficult to distinguish the bearish chart setup there. I’m just listing all the technical indicators which are pointing down on this chart.

• The trend is down on the H1 chart
• Stochastic is overbought
• The 50 and 200 SMAs provided resistance earlier during the retrace up
• The hourly candlestick formed a pin at those MAs  

These are all bearish indicators pointing down, but there’s more. If you switch to the H4 chart, you can see that the 100 simple moving average which has provided support earlier this week, is now providing resistance on top.

The picture seems pretty bearish, and the risk sentiment is off at the moment, so CHF is still climbing just like the Yen. This means that EUR/CHF will remain on the back foot, which is what we need.