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EUR/CHF: The Bear finds a strong ground

EagleFX

EUR/CHF has been trading within two horizontal levels for quite a while. The pair produced a bearish engulfing candle yesterday at a level of resistance where the price had rejection twice already. Thus, if the price heads towards the South and makes a breakout at the level of support, the sellers will consider it as a triple top neckline breakout. It may create good bearish momentum and drive the price towards the South. Major intraday charts look good for the Bear as well. Thus, the pair may end up producing a bearish candle and make a breakout at the neckline. Let us now have a look at three major charts.

Chart 1 EUR/CHF Daily Chart


The chart shows that the price had rejection at the level of 1.08400 three times. At the last rejection, it produced a bearish engulfing candle. This may attract the sellers to keep their eyes on the pair to go short below the level of 1.07400. The chart shows that the price has enough space to travel towards the South. Thus, the sellers may keep adding positions and make the pair very bearish. The price may find its next support around 1.06000. If the price does not make a breakout but finds support again at the support zone, the pair may remain choppy and roam around within these two levels.

Chart 2 EUR/CHF H4 Chart


The H4 chart shows that the price made a bullish move and found its resistance at the level of 1.08400. It produced a bearish inside bar and headed towards the South with good bearish momentum. It had a bounce at the level of 1.07600 and produced two bullish candles. The sellers may wait for the price to produce a bearish reversal candle and go short below the level of 1.07600. The price may find its next support around 1.07100.

Chart 3 EUR/CHF H1 Chart


The chart shows that the price made a bearish move upon producing a double top. It consolidated at the level of 1.07770 and extended its bearish wave. Upon finding its support at 1.07600, the price headed towards the North. As of writing, the price has been bearish at 1.0770. If the level produces a bearish reversal candle, the sellers may drive the price towards the level of 1.07770. A bearish breakout at the level may generate good bearish momentum and drive the price towards the level of 1.07400.

The H4 and the H1 chart look good for the Bear. The daily chart needs a bearish breakout. Considering triple top resistance and the bearish engulfing candle in the daily chart, it seems that the Bear may come into play and dominate in the pair for some days.

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