Any hope for a pull ? EUR/CHF 1D analysis 09/07/21
Hello everyone , as we all know the market action discounts everything :) looking at the EUR/CHF chart and indicators we are getting a lot of bearish signs for the daily basis , where the market price is moving below the MA and RSI showing weakness in the market sitting at 31.79 . The MACD creating a bearish divergence on july 8th . we might see the market drop down to the range of 1.06655 hitting the first resistance line or even dropping even more and hitting 1.05060 hitting the second resistance line,
looking at the bigger picture the EUR seems to formed a Flag pattern which indicates possible continuation of a previous trend but we need to wait for the conformation , and waiting a conformation on a Head and shoulder pattern that could be the move that pulls back the price back up ? if it is we will probably be seeing the price bouncing back and hitting the support line at 1.112 and maybe getting bigger momentum and hitting the second support at 1.146.
Fundamental Point of View :
In a report, Swiss Federal Statistical Office said that Swiss consumer price inflation rose to a seasonally adjusted 0.2%, from 0.3% in the preceding month.
The forecast for the EUR/CHF remains bearish with rising inflation and a weaker-than-expected global economy combining for a turbulent summer. Interest rates may rise sooner than communicated by many central banks, adding to the debt problem. The CCI reached extreme oversold territory but has plenty of downside potential. Can bulls extend the sell-off in the EUR/CHF and force it into its horizontal support area?
The bearish note in EUR/CHF is seen unchanged while below the 1.1002/05 band, suggested Axel Rudolph, Senior FICC Technical Analyst at Commerzbank.
“EUR/CHF continues to recover from the 200 day moving average at 1.0883 and remains close to the 55 day moving average and April 12 low at 1.0969/75 above which the mid-March low and current June high can be spotted at 1.1002/05.”
While trading below this area we will retain a medium-term bearish forecast.
EUR/CHF is threatening a potential ‘head and shoulders’, which would be confirmed above downtrend resistance at 1.1003/04. This would end the Q2 move lower and turn the one-month risks higher for a move towards 1.1029, then 1.1077. The potential ‘measured base objective’ projects a move above here and roughly coincides with the 1.1118 corrective price high. With the 1.1153 high not far above, we would look for a cap in this zone. said FXstreet teams
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This is my personal opinion and not financial advice.
If you have any questions please ask
Thank you for reading.
looking at the bigger picture the EUR seems to formed a Flag pattern which indicates possible continuation of a previous trend but we need to wait for the conformation , and waiting a conformation on a Head and shoulder pattern that could be the move that pulls back the price back up ? if it is we will probably be seeing the price bouncing back and hitting the support line at 1.112 and maybe getting bigger momentum and hitting the second support at 1.146.
Fundamental Point of View :
In a report, Swiss Federal Statistical Office said that Swiss consumer price inflation rose to a seasonally adjusted 0.2%, from 0.3% in the preceding month.
The forecast for the EUR/CHF remains bearish with rising inflation and a weaker-than-expected global economy combining for a turbulent summer. Interest rates may rise sooner than communicated by many central banks, adding to the debt problem. The CCI reached extreme oversold territory but has plenty of downside potential. Can bulls extend the sell-off in the EUR/CHF and force it into its horizontal support area?
The bearish note in EUR/CHF is seen unchanged while below the 1.1002/05 band, suggested Axel Rudolph, Senior FICC Technical Analyst at Commerzbank.
“EUR/CHF continues to recover from the 200 day moving average at 1.0883 and remains close to the 55 day moving average and April 12 low at 1.0969/75 above which the mid-March low and current June high can be spotted at 1.1002/05.”
While trading below this area we will retain a medium-term bearish forecast.
EUR/CHF is threatening a potential ‘head and shoulders’, which would be confirmed above downtrend resistance at 1.1003/04. This would end the Q2 move lower and turn the one-month risks higher for a move towards 1.1029, then 1.1077. The potential ‘measured base objective’ projects a move above here and roughly coincides with the 1.1118 corrective price high. With the 1.1153 high not far above, we would look for a cap in this zone. said FXstreet teams
Make sure to Follow and Like for more content
This is my personal opinion and not financial advice.
If you have any questions please ask
Thank you for reading.