Hi Traders! Today I am sharing with you the EURCHF buy idea technical analysis post. In this pair based on the multi-timeframe analysis method we are going to look for the evidences on three timeframes that is on the current trading timeframe and two timeframes higher, when we get evidences which supports our view on these three timeframes this makes the setup very reliable. Now lets start our analysis from the highest timeframe which will be the daily chart here.
- 1 EURCHF D1(Daily) Chart Analysis – Bullish Divergence, Bollinger Bands, Stochastic Oscillator
- 2 EURCHF H4 (4 Hours) Chart Analysis – Dynamic Support, Bullish Divergence On MACD And RSI
- 3 EURCHF H1 (1 Hour) Chart Analysis – Trend Line Breakouts, Bullish Convergence
- 4 Technical Analysis & Forecast Summary
EURCHF D1(Daily) Chart Analysis – Bullish Divergence, Bollinger Bands, Stochastic Oscillator
On the daily chart the price which is moving lower has created a bullish divergence between the first low which has formed on 14th November 2020 and the second low which has formed on 28th January 2020 based on the MACD indicator which we may consider as an evidence of bullish pressure. In addition to this we also have 20 candles ride on the lower band of the Bollinger Bands indicator and also based on the Stochastic oscillator we can see that the price has reached its extreme, we may consider these as evidences of bullish pressure. We may now move down to one timeframe lower and see if we can find evidences that supports this bullish view.
EURCHF H4 (4 Hours) Chart Analysis – Dynamic Support, Bullish Divergence On MACD And RSI
Looking at the H4 chart we can see that we have bullish divergence here as well based on the MACD histogram indicator between the first low which has formed on 14th January 2020 and the second low which has formed on 27th January 2020. In addition to this we also have bullish divergence on the MACD moving average indicator and the RSI indicator. We also have a dynamic support line (alternative trend line) that has formed based on the lows and the price is respecting it so far, until this dynamic support holds my view remains bullish here.
EURCHF H1 (1 Hour) Chart Analysis – Trend Line Breakouts, Bullish Convergence
On the H1 the first bullish evidence that we have is the trendline breakout, we have a bigger (marked in red line) and smaller trend line (marked in blue line) that has formed and the price which is moving higher has currently broken above both these trend lines, we may consider this as evidences of bullish pressure. In addition to this we also have a bullish convergence that has formed, that is the price created a bullish divergence and then it moved higher and broke above the last high. Generally as per the book scenario, we may now look for pullbacks to happen and then we may start looking for bullish setups with more bullish evidences (evidences could be in the form of candle stick patterns, false breaks, trend line breakout etc… supporting the bullish view) in order to start looking for the buys.
Technical Analysis & Forecast Summary
Lets recap and summarize the analysis we had so far:
EURCHF D1(Daily) Chart Analysis:
- Bullish Divergence, Bollinger Bands, Stochastic Oscillator
EURCHF H4 (4 Hours) Chart Analysis:
- Dynamic Support, Bullish Divergence On MACD And RSI
EURCHF H1 (1 Hour) Chart Analysis:
- Trend Line Breakouts, Bullish Convergence
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