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EUR/CHF: The Bear finds its ground to make a move

EagleFX

EUR/CHF made a strong bullish move. The pair may have found its resistance since it has produced two bearish daily candles consecutively. Last Friday’s candle came out as a strong bearish Marubozu candle. This may attract the intraday sellers to go short in the pair and drive the price towards the South further. Major intraday charts look good for the bear as well. Thus, the pair may end up producing a bearish candle in the daily chart today as well.

Chart 1 EUR/CHF Daily Chart


The chart shows that the price upon finding its support around 1.06000 made a strong bullish move. The pair produced four consecutive bullish candles and then had a rejection around 1.07850. The pair produced a bearish inside bar followed by another bearish candle. Thus, intraday sellers may wait for the price to make a bearish breakout at the level 1.07200 and go short in the pair. Ideally, the sellers on the daily chart may wait for the price to consolidate and produce a bearish candle to offer them short entry with lucrative risk-reward. The price may find its next support around 1.06000.

Chart 2 EUR/CHF H4 Chart


The chart shows that the price after making a strong bullish move found its resistance around the level of 1.07900. The price consolidated around the level and produced a bearish engulfing candle. The price then consolidated and continued its bearish journey. The price has been in consolidation again. If it produces a bearish reversal candle, the sellers may go short below the level of 1.07200. On the other hand, if the price heads towards the North, the price may find its next resistance around 1.08000.

Chart 3 EUR/CHF H1 Chart


The chart shows that the price made a bearish move at a moderate pace. It found its support at 1.07200 and produced a bullish engulfing candle. The price has been in consolidation around the level of 1.07400. The intraday sellers may look for short opportunities. The price may consolidate around the level of 1.07200. If it makes a bearish breakout at the level, the price may head towards the South with good bearish momentum. The sellers may find their support around 1.06500. In case of a bullish breakout at 1.07400, the price may head towards the level of 1.07675.

The H4 and the H1 charts look good for the bear. The daily chart is bearish. It may need some time to get more bearish for the sellers to offer entries with a lucrative risk-reward. Considering these three charts, the pair may produce another bearish candle in the daily chart.

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