Hi Traders! EURCHF short term forecast and technical analysis post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
EURCHF D1(Daily) Chart Analysis – Key Support Zone, Potential Bullish Divergence, Stochastic Oscillator
On the daily chart, we have a key support zone that has formed based on the 61.8% (1.06594) Fibonacci expansion level of the big first wave. The price which is moving lower has currently reached this zone and is holding inside it. Until this key support zone holds, I expect short term bullish moves to happen here. We also have bullish evidences in the form of a potential bullish divergence that is forming between the first low that has formed at 1.07155 and the second current low that has formed at 1.06343 based on the MACD indicator. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme. We may now move down to one timeframe lower and look for evidences supporting this short term bullish view.
EURCHF H4(4 Hours) Chart Analysis – Key Support Zone, Bullish Divergence
On the H4 chart, the price which is moving lower has currently reached a key support zone formed by the 161.8%(1.06618) Fibonacci expansion level of the first wave and the 61.8% (1.06519) Fibonacci expansion level of the second wave. In addition to this, the daily key support zone also coincides in the same area which makes this a very strong support zone. Also, we have a bullish divergence that has formed between the first low that has formed at 1.06581 and the second low that has formed at 1.06343 based on the MACD indicator. We have this bullish divergence on the RSI indicator as well, we may consider these as evidences of bullish pressure. So everything looks good here for the bulls and until the key support zone holds my short term view remains bullish here. If the price moves higher and breaks above the high at 1.07028 we may then consider it as a validation for the bullish view and may expect the price to move higher further in the short term.
Technical Analysis & Forecast Summary
EURCHF D1(Daily) Chart Analysis
- Key Support Zone, Potential Bullish Divergence, Stochastic Oscillator
EURCHF H4(4 Hours) Chart Analysis
- Key Support Zone, Bullish Divergence
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 short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Traders Academy Club Team
