Hi Traders! EURCHF technical analysis and forecast is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
EURCHF D1(Daily) Chart Analysis – Range, Bearish Divergence, Uptrend Line Breakout
On the daily chart, we have a range that has formed which started on 5th June 2020. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has reached the top of this range, respected it and is currently moving lower. We also had a bearish divergence that has formed between the first high that has formed at 1.08710 and the second high that has formed at 1.08915 based on the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and broke below the most recent uptrend line, we may consider this as another evidence of bearish pressure. Currently, it looks like a pullback is happening, and also there are no signs opposing this bearish view. So everything looks good here for the bears and we may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
EURCHF H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Strong Resistance Zone
On the H1 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Also, we have a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it. Currently, this strong support zone is acting as a strong resistance zone for us. Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further.
Technical Analysis & Forecast Summary
EURCHF D1(Daily) Chart Analysis
- Range, Bearish Divergence, Uptrend Line Breakout
EURCHF H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, Strong Resistance Zone
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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To your success,
Vladimir Ribakov
Certified Financial Technician
