Since June, EUR/CHF has been trapped between the the1.0650 support and 1.0870 resistance area. Thought throughout these past 6 months, price action started to favor the bullish trend, as it continues to move higher and reject support levels one by one.
The first rejection of the support occurred back in June, where the previous level of resistance at 1.0600 psychological level became the demand zone. The next bounce off the support occurred This month when the price rejected the 161.8% Fibonacci retracement level along with the 200 Simple Moving Average. The final bounce off yet another support was produced just last week when EUR/CHF rejected the 61.8% Fibs at 1.0740. It can be seen that each of these support levels is higher than the previous one, which shows that lower highs are being printed. On the latest rejection of the 1.0740 support, the price bounced off the 200 EMA as well as the downtrend trendline, which previously got broken.
Today EUR/CHF is showing some healthy growth with a large gree daily candle appearing on the chart. This might imply that buyers and taking full control and it is highly probable that the uptrend will continue. This should result in the EUR/CHF moving towards the 1.1000 psychological resistance, which is confirmed by two Fibonacci retracement levels. The first is 23.6%, and the second is 127.2% Fibs, as can be seen on the chart. This makes a growth potential of 160 pips from the current level.
Nonetheless, if the recently produced low near 1.0740 support will be penetrated, the bullish analysis will no longer be valid. This is because at that stage trend is likely to turn bearish. However, current price action strongly favors the uptrend, with a good probability of continuation.
Key support levels: 1.0800, 1.0740, 1.0655
Key resistance levels: 1.0870, 1.0916, 1.1000
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
The first rejection of the support occurred back in June, where the previous level of resistance at 1.0600 psychological level became the demand zone. The next bounce off the support occurred This month when the price rejected the 161.8% Fibonacci retracement level along with the 200 Simple Moving Average. The final bounce off yet another support was produced just last week when EUR/CHF rejected the 61.8% Fibs at 1.0740. It can be seen that each of these support levels is higher than the previous one, which shows that lower highs are being printed. On the latest rejection of the 1.0740 support, the price bounced off the 200 EMA as well as the downtrend trendline, which previously got broken.
Today EUR/CHF is showing some healthy growth with a large gree daily candle appearing on the chart. This might imply that buyers and taking full control and it is highly probable that the uptrend will continue. This should result in the EUR/CHF moving towards the 1.1000 psychological resistance, which is confirmed by two Fibonacci retracement levels. The first is 23.6%, and the second is 127.2% Fibs, as can be seen on the chart. This makes a growth potential of 160 pips from the current level.
Nonetheless, if the recently produced low near 1.0740 support will be penetrated, the bullish analysis will no longer be valid. This is because at that stage trend is likely to turn bearish. However, current price action strongly favors the uptrend, with a good probability of continuation.
Key support levels: 1.0800, 1.0740, 1.0655
Key resistance levels: 1.0870, 1.0916, 1.1000
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.