Hi Traders
Please see the chart above Eur/Chf.
We are extremely excited about this opportunity which we will break down with you below.
What are we forecasting now and why?
• Our first step is always to break down a pair with multi time frame analysis so let’s do that to begin with. On the Daily time frame Eur/Chf has been in a bearish descending trend with no real correction at all. We are now expecting that correction which has been initially signalled by price rejecting and breaking out of this trend.
• We can see price has also created a nice double bottom which we are now validating with the confluence of the above break of trend.
• Price has now created a simply impulse and correction move respecting a key Fibonacci level at 0.318 and showing a rejection as well as a rejection of previous resistance now turned support.
• Moving down onto the 4hr chart we can see that our EMA’s have now turned bullish, and we are buying from oversold conditions.
How will we enter the short?
• This trade is active now. We have the market rejecting the Fibonacci key level and finding additional support from the 50 and 200 EMA’s. We may see price consolidate a little around this zone but ultimately, we want to see a big bullish move.
Where will our first target be?
• If you look back to around August / September 2021 we see this exact same scenario with a massive bearish run followed by a nice bullish correction. This correction back in August / September 2021 took us to the 0.5 Fibonacci level of the impulse and this is where we will be targeting first. We will then monitor the price action and potentially leave part of this trade open towards our target 2 but will react to price once we get there.
Let me know in the comments below if full break downs like this are helpful and if you would like me to go into more detail for anything illustrated on the charts.
If you agree with this idea, be sure to hit the thumbs up and if you haven’t done so already follow for more set ups like this and full breakdowns.
Thanks in advance,
The Fx Chartist
Please see the chart above Eur/Chf.
We are extremely excited about this opportunity which we will break down with you below.
What are we forecasting now and why?
• Our first step is always to break down a pair with multi time frame analysis so let’s do that to begin with. On the Daily time frame Eur/Chf has been in a bearish descending trend with no real correction at all. We are now expecting that correction which has been initially signalled by price rejecting and breaking out of this trend.
• We can see price has also created a nice double bottom which we are now validating with the confluence of the above break of trend.
• Price has now created a simply impulse and correction move respecting a key Fibonacci level at 0.318 and showing a rejection as well as a rejection of previous resistance now turned support.
• Moving down onto the 4hr chart we can see that our EMA’s have now turned bullish, and we are buying from oversold conditions.
How will we enter the short?
• This trade is active now. We have the market rejecting the Fibonacci key level and finding additional support from the 50 and 200 EMA’s. We may see price consolidate a little around this zone but ultimately, we want to see a big bullish move.
Where will our first target be?
• If you look back to around August / September 2021 we see this exact same scenario with a massive bearish run followed by a nice bullish correction. This correction back in August / September 2021 took us to the 0.5 Fibonacci level of the impulse and this is where we will be targeting first. We will then monitor the price action and potentially leave part of this trade open towards our target 2 but will react to price once we get there.
Let me know in the comments below if full break downs like this are helpful and if you would like me to go into more detail for anything illustrated on the charts.
If you agree with this idea, be sure to hit the thumbs up and if you haven’t done so already follow for more set ups like this and full breakdowns.
Thanks in advance,
The Fx Chartist
Trade closed: stop reached