EUR/CHF Has Entered Another Bullish Phase. Getting Ready to Buy
Skerdian Meta • 1 min read
EUR/CHF has been trading in a consistent uptrend for nearly a year from March last year to January this year. The Brexit scare cooled off after Macron won the French elections. But in January, safe haven assets received some strong bids and this pair pulled back lower.
In all fairness, it was time this pair made a decent retrace lower because it has been overbought for a long time, so a pullback was overdue. The retrace lasted for 5-6 weeks, but now the buyers are back in control.
EUR/CHF has climbed pretty fast in the last several days. This sort of price action tells us that the buyers have returned strongly. So, the uptrend is back in place, therefore we are looking to buy this forex pair today.
EUR/CHF is approaching a buying zone
The hourly chart is oversold and the price is finding some support at the 50 SMA (yellow), but on the H4 chart, there’s still some room to run to the downside. This timeframe chart is not oversold yet.
So, I’m waiting until the stochastic indicator becomes oversold on this chart. I think that will happen when the price reaches the 20 SMA (grey). That moving average comes at 1.1670s. That level has been providing support this week and it is likely to do the same again, so that’s the place I’m looking at, let’s wait a bit longer.