EUR/CHF Has Entered Another Bullish Phase. Getting Ready to Buy - Forex News by FX Leaders

EUR/CHF Has Entered Another Bullish Phase. Getting Ready to Buy

Posted Friday, March 9, 2018 by
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.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles

Leave a Reply

Notify of