Hello Friends,
In Yesterday’s Daily Analysis post, I forecasted a down move in SILVER. This view was confirmed later, and SILVER was sold off earlier in the Asian session. Hopefully you positioned yourself to enjoy this expected move!
Moreover, in the Asian session, both the central banks, RBA and RBNZ came out with dovish statements and reiterated that the currencies are still overvalued. Other than this, there was no major economic event yesterday, and both EURUSD and GBPUSD traded in a narrow 30-40 pip range.
Today, we have an interesting buy opportunity for EURCHF. EURCHF is getting close to a major ascending trend line on the Daily chart as plotted on the chart shown below. We also have 200 MA (Moving Average) around the same area.
There are some critical support levels marked with the red lines on the 4H chart below. So, we should be looking to buy from the levels such as 1.2285/80. From the said levels, we will wait for a clear Bullish candle pattern to form with a tick to the upside on MACD to enter in a trade.
Initial target should be around 20 MA on the 4H chart. Final target could be a bit higher around 1.2380 or may be 1.24. My advice would be to take 60-70% profit at the initial target and let the remaining part run for the final target. Stop should be triggered on 1H close below the trend line.
Today again, we do not have any major fundamental event to follow except Canadian Wholesale sales data during the NY session, which may not be a market moving event. So, if you like to play ranges then trade with a tight stop for 15-20 pips profit in the range.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURAUD, NZDUSD, AUDNZD, GBPCAD, GBPJPY, SILVER and EURGBP.
Get it HERE: Vladimir’s Markets Forecast
Trade well friends. Happy trading!
