Hi Traders! EURCHF forecast and technical analysis 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!
On the daily chart, we have a bullish rally and it looks like this bullish rally is about to continue itself as there are no signs that show this bullish trend is over yet. So until we get any opposite signs my view remains bullish here. We also had a strong resistance zone that had formed which the price has broken above and is currently holding above this zone, we may consider this as evidence of bullish pressure. In addition to this, 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. Currently, it looks like a correction is happening and I expect the price to continue higher further after this correction. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
Looking at the H4 chart we could see that the daily correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range reached a key support zone formed by the 61.8%(1.10286), 100%(1.09802) Fibonacci expansion level of the first wave, and the bottom of this range. The price respected this key support zone and bounced higher from this zone. Also the ADX indicator gave a bullish signal 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 evidence of bullish pressure. The price is currently at the top of this range, if we get a valid breakout above the top of this range, we may then consider it as a validation for the bullish view and may expect the price to move higher further.
EURCHF D1(Daily) Chart Analysis
EURCHF H4(4 Hours) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this 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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To your success,
Vladimir Ribakov
Certified Financial Technician
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