EURCHF Long Setup & Analysis

10 авг. 2020 г.

The EUR/CHF situation is quite interesting, and it will soon give a few possibilities for us to trade. Right now, price is trying to break the weekly channel for a third time and if we see a close above the 1.07500 area, we can expect price to move towards the next weekly supply zone near 1.10000.

On the 4H timeframe after price broke the closed triangle formation and the daily supply zone near 1.06600, we entered a parallel channel and we are still in it. On Friday we touched its bottom trendline, where demand pressure kicked in and now price is headed towards the upper trendline once again. There it aligns with the daily supply zone.
If we see a strong close above 1.08000 (0.236 Fibonacci level), we can expect the price to reach 1.08400 (daily supply zone). And if it does, this will mean that we will have a bullish weekly close.

According to last week’s COT Report, we can see that the EUR still holds its strong long contract size positions.

The second scenario is if price gets rejected by 1.08000 (0.236 Fibonacci level):
1. It will break below the channel and will go towards the lower daily demand zone near 1.06600.

You can see that price respected the Fibonacci levels multiple times and therefore we must keep them always in mind.
Happy Trading!