Following the recent depreciation in EURO value, I think EURCHF also technically is ready for a significant drop. Here are a few reasons that explain why I made this call.
1) This is weekly EURO weighted averaged chart (to replicate, see the screenshot title). This chart shows the EURO value versus the other 7 major currencies. As it can be seen RSI trend diverges the price trend. RSI also is making lower lows where the price trend makes the higher high. Weaker EURO is what we need for our EURCHF Short trade.
2) This is Euro future chart ( to replicate search E61! on TV). See the wedge breakout on the chart. It has a lot room to get to the lower band of the rising channel.
3) This is Euro index. ( to replicate search for EUSTX50). Currencies and indices normally move against each other. For instance GBP and FTSE100, YEN and NIKKEI. Bellow if we have stronger Euro index that means cheaper Euro.
This is exactly what is happening.
4) Now let’s look at CHF. This is the weighted average CHF chart. After a significant fall in CHF value for the last a few weeks, it is sitting at a major support now. A bounce is expected now. I doubt it breaks lower as there is no major SNB news.
5) This is CHF futures chart. Again it is sitting at a major rising support now. A bounce is expected. Again great for our EURCHF Short trade.
1) This is weekly EURO weighted averaged chart (to replicate, see the screenshot title). This chart shows the EURO value versus the other 7 major currencies. As it can be seen RSI trend diverges the price trend. RSI also is making lower lows where the price trend makes the higher high. Weaker EURO is what we need for our EURCHF Short trade.
2) This is Euro future chart ( to replicate search E61! on TV). See the wedge breakout on the chart. It has a lot room to get to the lower band of the rising channel.
3) This is Euro index. ( to replicate search for EUSTX50). Currencies and indices normally move against each other. For instance GBP and FTSE100, YEN and NIKKEI. Bellow if we have stronger Euro index that means cheaper Euro.
This is exactly what is happening.
4) Now let’s look at CHF. This is the weighted average CHF chart. After a significant fall in CHF value for the last a few weeks, it is sitting at a major support now. A bounce is expected now. I doubt it breaks lower as there is no major SNB news.
5) This is CHF futures chart. Again it is sitting at a major rising support now. A bounce is expected. Again great for our EURCHF Short trade.
Comment:
This is weighted average CHF. Would you be able to predict the price action in May? :)
Comment:
Well as expected the price has broken both the wedge and rising channel. Now bounding off the 4hrs EMAs and hopefully we would be observing some nice price action. Thanks for following
Also see RSI :)
Also see RSI :)
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Seems it is going to start ... :)
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75 pips in profit. A lot more to come ...
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The question is whether EURO can break such strong resistance this week?
Comment:
:)
Comment:
:)
Comment:
almost ...
Trade closed: target reached:
Thanks for following this post.
KHAN
KHAN