EUR/CHF: Is the pair getting ready for more bearish move?
By Eaglefx On May 11, 2020 in Daily Market Analysis
EUR/CHF has been in consolidation on the daily chart for the last four trading days. The pair upon finding its resistance around 1.05960 made a bearish move and had a bounce at a support zone where the price had a bounce earlier as well. However, Friday’s candle came out as a bearish engulfing candle. Thus the sellers may look to go short in the pair. Let us now have a look at three major charts.
Chart 1 EUR/CHF Daily Chart
The chart shows that the price has been bearish on the daily chart for many days. It had a bounce around 1.05960 twice. Thus, the price has been in consolidation around the level. Since Friday’s candle came out as a bearish engulfing candle after consolidation, the pair may get bearish again. The daily sellers may go short below the level of 1.05180. The price may find its next support around 1.03510. On the other hand, the price is at a triple bottom. Thus, a bullish reversal candle may change the equation and push the price towards the North. If the chart gets bullish, it may find its next resistance 1.05960.
Chart 2 EUR/CHF H4 Chart
The H4 chart shows that the price produced a bearish inside bar at 1.05460, which is a flipped resistance. The price had a rejection earlier; thus, a breakout at 1.05215 would be considered as a breakout at a double top’s neckline. This may attract the H4 sellers to go short in the pair and drive the price towards 1.04740. On the contrary, the price had a bounce at the level of 1.05215 twice. A bullish reversal candle may push the price towards the North, and the price may find its next resistance around 1.05460. However, the H4 buyers shall wait for the price to make a breakout at 1.05460 to go long in the pair since the daily chart is very bearish biased.
Chart 3 EUR/CHF H1 Chart
The chart shows that the price upon having a bounce at 1.05215 headed towards 1.05100. It may produce a double top around the level. The sellers may go short in the pair below 1.05220. However, if the price makes a breakout at 1.05215, it would head towards 1.0530 with good bearish momentum. In case of a bullish breakout, the price may find its next support at 1.05360.
Considering these three charts, the pair may produce a bearish candle today as well. This may play a vital role and make the pair remain bearish for some days.