EUR/CHF breaks out
Fawad Razaqzada April 23, 2019 12:50 PM
The EUR/CHF resumed its bullish trend in early April after the breakdown attempt below key support at 1.1200 failed.
The EUR/CHF resumed its bullish trend in early April after the breakdown attempt below key support at 1.1200 failed. Since then, every time it has printed a bearish-looking daily candle, those patterns have consistently proved to be traps for the bears. Consequently, we have seen a short squeeze rally above old highs circa 1.1440s, which has been taken out today. Thus, going forward, we expect the dips back to old resistance areas such as 1.1440 to be supported. The next pivotal level is 1.1500, around which we may see some profit-taking should we get there. Essentially, though, the trend is bullish, and we think that an eventual return to that 1.20 handle could be on the cards over the coming weeks and months. However, we would be quick to withdraw our bullish views should price action turns bearish – for example, if we now move back below the base of the latest bullish move at 1.1390.
Source: TradingView and FOREX.com.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.