Last Friday we opened a buy forex signal with the EUR/CHF. This forex pair was retracing lower after trending higher for several days. That signal closed this morning as the EUR/CHF made another leg higher.
In the last several hours though, this forex pair dived lower again. The Euro reversed lower during this time and that sent the pair tumbling. It reached the same level when we bought on Friday. Why not go long again?
The support area is holding again today
Looking at the H1 chart above, this pair reached the support area that comes between 1.1670 and 1.1680. It has been holding the price in the last three trading days and formed a nice support zone.
The stochastic indicator is severely oversold on the H1 chart and switching to the H4 chart, you can see that stochastic has become oversold here as well. This means that the move down is over and a reverse higher will follow.
This hourly candlestick looks bullish so far. It engulfed the previous bearish one, a bullish engulfing signal. It’s still early, but so far it seems the reverse is starting to form. We are long on this pair, let’s hope it reverses soon.
// 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.