Hi Traders! EURCHF technical analysis and short term forecast post 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 Home Trader Club Spoiler alert – free memberships are available!. Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
EURCHF D1(Daily) Chart Analysis – Downtrend Line Breakout, RSI Indicator, ADX Indicator
On the daily chart, we have a bullish rally followed by a double-wave correction. The price then moved higher and has currently broken above the most recent downtrend line, we may consider this as evidence of bullish pressure. In addition to this, we have this downtrend line breakout on the RSI indicator as well, which we may consider as another evidence of bullish pressure. Also, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, currently, there are no signs opposing this bullish view. We may now move down to lower timeframe and look for evidences supporting this short-term bullish view.
EURCHF H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Higher Highs, ADX Indicator
On the H4 chart too, we have a bullish rally and currently, it looks like this bullish rally is about to continue. Based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward-moving market conditions so it basically reflects a bullish environment. In addition to this, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Also, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads a value over 25, we may consider this as yet another evidence of bullish pressure. In addition to this, currently, there are no signs opposing this bullish view here as well. So based on all this, until the strong support zone shown in the image below(marked in green) holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
EURCHF D1(Daily) Chart Analysis
- Downtrend Line Breakout, RSI Indicator, ADX Indicator
EURCHF H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Higher Highs, ADX Indicator
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.
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Happy Trading!
Arvinth Akash
Home Trader Club Team
