Buying the Pullback in EUR/CHF Again at the Same Level Today - Forex News by FX Leaders
These MAs should provide support now

Buying the Pullback in EUR/CHF Again at the Same Level Today

Posted Wednesday, February 27, 2019 by
Skerdian Meta • 1 min read

If you follow our forex signals you would have noticed the buy signal in EUR/CHF. We bought this pair about a week ago and after bouncing up and down for about a week, this pair finally made a bullish move yesterday as EUR/USD decided to break its own range and head to 1.14.

But, the sentiment deteriorated during the Asian session as Pakistan shot two Indian military aircrafts down last night, increasing demand for safe havens and sending EUR/CHF lower. Now, this pair is back where it was when we opened the first signal, so we decided to try the upside again from here.

You could ask why we didn’t wait longer and buy at the bottom of the previous range at around 1.1330s. But, that range has now been broken and the top of it, which was at 1.1360-70, should turn into support now. EUR/CHF is already oversold on the H1 time-frame, as you can see from the chart above. Besides that, the moving averages are all standing around here now and they should provide some support to this pair.

The 50 and 100 SMAs are providing support on the H4 chart

Shifting to the H4 time-frame, we see that the 50 SMA (yellow) and the 100 SMA (green) are providing support on this chart. The stochastic indicator is not oversold yet, but the run for safe havens has stopped now, so a reverse might be underway soon if there are no more plane shootings.

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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.
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