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EUR/CHF: Will the Bearish daily candle drive the price down?

EagleFX

EUR/CHF produced a bearish engulfing candle. The daily chart shows that the price has been in consolidation after being bullish. If the chart produces a bullish reversal candle, the buyers may push the price towards the North further. However, the last candle may attract the sellers to go short in the pair and drive the price towards the South. The H4 and the H1 chart look good for the bear. Let us have a look at these three charts.

Chart 1 EUR/CHF Daily Chart


The chart shows that the price after being bullish and bouncing off double bottom support headed towards the North. It found its resistance around 1.06340 and consolidated around the level. Yesterday’s candle came out as a bearish engulfing candle. This may attract intraday sellers to look for short opportunities in the pair. The price may find its next support around 1.05000. On the other hand, if today’s candle comes out as a bullish engulfing candle closing above 1.06340, the buyers may take over the control again and push the price towards the North. The price may find its next resistance around 1.07500.

Chart 2 EUR/CHF H4 Chart


The H4 chart shows that the price had a rejection at the level of 1.06500 twice. At the second rejection, it produced a bearish inside bar but headed towards the South. The price has been in consolidation now. The sellers may look for short opportunities upon getting bearish reversal candle. The price may find its next support around 1.05500. If the level is breached, it may head towards the level of 1.05000.

Chart 3 EUR/CHF H1 Chart

The H1 chart shows that the price after being bearish had a bounce at the level of 1.05810. Upon making a bullish correction, the chart is about to produce a double top. If the price heads towards the North and makes a breakout at 1.05810, the sellers may drive the price towards the South. The price may find its next support around 1.05600. In case of a bullish breakout at 1.05900, the price may find its next resistance around 1.06100.

The daily chart looks good for the buyers despite producing the bearish engulfing candle. However, the H4 and the H1 chart look good for the sellers. Considering these three charts, it seems that the pair may produce another bearish candle on the daily chart. However, if it produces a bullish engulfing candle, the bull is going to dominate the pair in the coming days.

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