EUR/CHF Descending Triangle – is it a Good time to Short?
Arslan Butt • 1 min read
On the 4 hour timeframe, EUR/CHF seems to violate the descending triangle pattern, which was supporting the pair around 1.0525. Closing of candles below this level will confirm the bearish breakout and may drive further selling until 1.0470. For now, an immediate resistance stays around 1.0520 and 1.05475. The 50 EMA is still weighing on the Euro cross pair, and it may drive selling bias in EUR/CHF today.
Spain and Italy have already released the reports of inflation numbers for the month of March. In March 2020, the Consumer Price Index (CPI) grew by 0.1% over a month, following stability in the prior month. Manufactured goods prices stimulated (+1.4% after +0.2%), in the wake of winter sales in February. Tobacco prices rose by 6.6%, because of a tax hike. Despite this, the single currency Euro is getting weaker in the wake of increase number of COVID-19 cases around the globe.
EUR/CHF has created a descending triangle pattern that was underpinning the pair at 1.0520 along with resistance at 1.05675. As we can see, the pair is already trying to breach the descending triangle. Usually, descending triangle patterns tend to break down, which may open further selling bias until the next target 1.0470.
On the 4 hour chart, the 50 periods EMA and the descending trendline are pressing EUR/CHF lower, and it may drive further selling bias in the currency pair.