EURCHF Short Term Forecast Follow Up And Update

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EURCHF Short Term Forecast Follow Up And Update

Hi Traders! EURCHF short term forecast follow up and update is here. On May 9, 2024 I shared this “EURCHF Technical Analysis And Short Term Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader ClubSpoiler alert – free memberships are available!

My Idea

On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like a correction is happening. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. Also, we had two strong support zones that has formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further.

 

EURCHF Short Term Forecast Follow Up And Update

 

 

EURCHF H1(1 Hour) Chart Current Scenario

In this pair based on the above-mentioned analysis my short-term view was bearish and until the two strong resistance zones hold I was expecting the price to move lower further after pullbacks. The price action didn’t follow my analysis here and this idea failed. After the bearish trend pattern the price which was moving higher reached the second strong resistance zone and provided a short move to the downside. The price then moved higher further and we got a valid breakout above the second strong resistance zone thus invalidating this short-term bearish view. My current view on EURCHF is neutral.

 

EURCHF Short Term Forecast Follow Up And Update

 

So, traders, this is why I wanted to show this example to help you understand why we should always trade based on the facts and hints provided by the market and take the right actions according to that. Even though we had various facts supporting the bearish view here, the price didn’t hold in the second strong resistance zone as I expected it to and broke above it, which is a contradictory sign provided by the market opposing the bearish view. Also, you should keep in mind that losses are part of trading we can’t expect every trade to go as per our plan and provide us profits. In trading, we can’t avoid losses but in order to be successful in trading, we should know how to cut losses early and how to manage the trade when the price goes in the opposite direction.

Note: You can watch the webinar on how to cut losses early here

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If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Arvinth Akash
Home Trader Club Team.

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