Hi Traders! EURCHF technical analysis and forecast 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!
EURCHF D1(Daily) Chart Analysis – Range Breakout, Parabolic Sar, ADX Indicator
On the daily chart, we had a range which started on 5th June 2020. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which was moving inside this range has broken above the top of it and is holding above it, we may consider this as evidence of bullish pressure. Also based on the Parabolic Sar we could see that the dots are below the price which we may consider as evidence of bullish pressure. In addition to this, 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 yet another evidences of bullish pressure. Also, there are no signs that show this current trend is over yet. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
EURCHF H4(4 Hours) Chart Analysis – Bullish Hidden Divergence, Parabolic Sar, ADX Indicator
On the H4 chart, we have a bullish hidden divergence that has formed between the first low that has formed on 16th February 2021 and the second low that has formed on 28th February 2021 based on the MACD histogram indicator. In addition to this based on the Parabolic Sar, the dots are below the price here as well, we may consider these as evidences of bullish pressure. Also, the ADX indicator gave a bullish signal here as well 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 yet another evidences of bullish pressure. So based on all this, my view is bullish and I expect the price to move higher further from the current zone. Alternatively, if the price moves lower then the next area to look for bullish setups with bullish evidences would be the strong support zone (marked in blue) shown in the image below.
Technical Analysis & Forecast Summary
EURCHF D1(Daily) Chart Analysis
- Range Breakout, Parabolic Sar, ADX Indicator
EURCHF H4(4 Hours) Chart Analysis
- Bullish Hidden Divergence, Parabolic Sar, ADX Indicator
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 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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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
