Hi Traders! Today I share with you my EURCHF short term forecast and technical analysis post, 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 Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
EURCHF D1(Daily) Chart Analysis – Strong Support Zone, Bullish Convergence, ADX Indicator
On the daily chart, the price which was moving lower reached a strong support zone respected it and bounced higher from this zone. Also, we could see that the price has created a bullish divergence which formed between the first low formed at 0.95220 and the second low formed at 0.95151 based on the MACD indicator. The price then moved higher and broke above the last high at 0.96478 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as evidence of bullish pressure. In addition to this, 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 a value over 25, we may consider this as yet another evidence of bullish pressure. Also, currently, there are no signs opposing this bullish view. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidence supporting this short-term bullish view.
EURCHF H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bullish Trend Pattern, Strong Support Zone
On the H1 chart, 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. Also the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening. Also we had a strong resistance zone that have formed and the price which was moving higher has broken above this zone and is holding above it. After the breakout, this strong resistance zone is acting as a strong support zone for us. 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
- Strong Support Zone, Bullish Convergence, ADX Indicator
EURCHF H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bullish Trend Pattern, Strong Support Zone
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.
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
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!
Happy Trading!
Arvinth Akash
Home Trader Club Team
