Categories: Technical Analysis

EURCHF likely to break higher in the short term

The Euro was seen trading lower not only against the US dollar, but also against the Swiss franc. However, the EURCHF pair is likely forming a double bottom pattern on the 4 hour chart, which could act as a catalyst for a move higher in the pair. So, I think we should be looking for buy opportunities in the short term.

There is an important triangle forming on the 4 hour chart. There is also a resistance around the 1.2140 level. If the pair moves higher from the current or a bit lower levels, break the mentioned triangle resistance area and settle above it, then we can enter into a buy trade. Remember, wait for a double break before jumping into a trade.

Initial target should be around the 1.2170 level, and final target could be around the last high. Stop should be below the previous low.

Reviewing yesterday’s events and trades
Yesterday, there was no major high risk event lined up during the US session, so the market remained mostly quiet. However, the UK British Retail Consortium (BRC) Retail Sales Monitor data was published, which missed the expectation of a 0.6% rise, and registered a reading of -0.3%. This is weighing on the British pound, as the GBPUSD pair is again trading lower as expected. Other pairs such as the EURUSD and NZDUSD are also trading a touch lower.

Fundamental Outlook for the day
Today, the US federal budget balance data will be published during the NY session. If the outcome stays in line with the expectation, then the US dollar might gain further traction moving ahead, else might correct lower in the short term. Later during the next Asian session, the Japanese GDP data, and the BOJ monetary policy meeting minutes will be published. These events might cause a lot of moves on the Japanese yen, so we need to be very careful trading yen pairs moving ahead.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: USDJPY, USDCAD, GBPCHF, AUDCAD, AUDUSD, NZDUSD, GBPUSD and EURGBP.
Get it HERE: Vladimir’s Markets Forecast

Have a nice weekend friends. Happy trading!

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.