Hi Traders! EURCHF short term forecast and technical analysis post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the H4 chart here.
On the H4 chart the price is moving inside a range which started on 4th March 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has currently reached the top of it and is moving lower. The price has created multiple false breaks and bearish divergences between the first high that has formed on 15th April 2021 and the second high that has formed on 28th April 2021 which we may consider as evidences of bearish pressure. Also based on the Parabolic Sar we could see that the dots are above the price which we may consider as another evidence of bearish pressure. Also we have a key resistance zone that has formed based on the 100% (1.10805) Fibonacci expansion level of the first wave and the top of the range. The price which was moving higher, respected this zone and is bouncing lower from this zone. Until this key resistance zone holds my view remains bearish here. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this bearish view.
On the H1 chart we have a bearish divergence that has formed between the first high that has formed on 2nd February 2021 and the second high that has formed on 1st April 2021 based on the MACD indicator. The price then moved lower and broke below the last low at 1.10232 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also the price which is moving lower has broken below the most recent uptrend line, which we may consider as another evidence of bearish pressure. Also based on the Parabolic Sar we could see that the dots are above the price which we may consider as another evidence of bearish pressure. 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. So based on all this my view here is bearish and until the H4 key resistance zone holds I expect the price to move lower further in the short term.
EURCHF H4(4 Hours) Chart Analysis
EURCHF H1(1 Hour) 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 sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join us in our live market analysis, on daily basis, and improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
To your success,
Vladimir Ribakov
Certified Financial Technician
As we approach the end of another remarkable year, it’s time to take a moment…
Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of December…
The rally in U.S. stocks is encountering a fresh hurdle -- a potentially problematic rise…
Hi Traders! EURAUD short term forecast and technical analysis post is here. We do our…
Hi Traders! GBPCHF short term forecast follow-up and update is here. On October 3th, 2024…
Hi Traders! AUDJPY short term forecast and technical analysis post is here. We do our…
