This Indicator Is Very Tempting. Let’s Go Long Again on EUR/CHF
Skerdian Meta • 1 min read
If you remember, we have opened two buy forex signals in EUR/CHF in the last few trading days. This pair has been on a strong uptrend during the first week of this month. But last week, EUR/CHF traded in a tight range.
At first, the bottom of the range was provided by the 1.1770-80 level. But during the second half of the week, the bottom of the range has moved higher. The 50 SMA (yellow) caught up with the price and it pushed the rage higher. It provided support to EUR/CHF during the end of the week and early this week.
We opened two forex signal during this time. We bought this pair at the 50 SMA and caught some nice pips as it moved higher. Now, the price is back at this moving average. EUR/CHF has lost around 40-50 pips today as EUR/USD gives back all of yesterday’s gains.
The 50 SMA is the line on the sand for this pair
So, we are back at this moving average now and we just opened another buy signal. The price pierced this moving average briefly as it has done many times before, but has returned above it. It looks like this moving average is working again.
The stochastic indicator is not oversold yet, which would mean that the retrace is complete. But the hourly chart is severely oversold. So, the retrace is more than complete on the hourly chart. I don’t expect much action now since the US session is drawing to close, so by tomorrow morning the stochastic would have reached the bottom of the table and the H4 chart will be oversold.