Hi Traders! EURCHF technical analysis and short term forecast post 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!. Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
EURCHF D1(Daily) Chart Analysis – Psychological Level, Bullish Divergence, RSI Indicator, Stochastic Oscillator
On the daily chart, the price which was moving lower reached the psychological level 0.97 respected it and bounced higher from this zone. Also, we could see that the price which was moving lower has created a bullish divergence between the first low that has formed at 0.98059 and the second low that has formed at 0.96992 based on the MACD indicator, we may consider these as evidences of bullish pressure. In addition to this, we have this bullish divergence on the RSI indicator as well, which we may consider as another evidence of bullish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme and is bouncing higher, which we may consider as yet another evidence of bullish pressure. Also, currently there are no signs opposing this short term bullish view. So everything looks good here for the bulls, and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
EURCHF H1(1 Hour) Chart Analysis – Bullish Divergence, CCI Indicator, Higher Highs
On the H1 chart, the price which was moving lower created a bullish divergence which has formed between the first low at 0.97097 and the second low at 0.96992 based on the MACD indicator. In addition to this, we have this bullish divergence on the CCI indicator as well, which we may consider as another evidence of bullish pressure. The price then moved higher and broke above the last high at 0.97634 thus creating higher highs. Also, we should note that the price which was in a bearish trend so far creating series of lower highs, lower lows has created higher highs for the first time in a while which we may consider as sign of a possible trend change. We may consider these as evidences of bullish pressure. Until the strong support zone (marked in blue) shown in the image below holds my short term view remains bullish here. If we get a valid breakout above the high at 0.98050 we may then consider it as a validation for this bullish view.
Technical Analysis & Forecast Summary
EURCHF D1(Daily) Chart Analysis
- Psychological Level, Bullish Divergence, RSI Indicator, Stochastic Oscillator
EURCHF H1(1 Hour) Chart Analysis
- Bullish Divergence, CCI Indicator, Higher Highs
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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
