EURCHF is a slow volume pair, which moves slowly over few days range. We will analyze the chart on daily for decent pips move.

- Market structure: EURCHF had a bearish structure until it fell to the daily/weekly demand zone, or what you call a swing support level. At this level, market started to create descending ranging prices, which meant that the bears have lost their force to take control of the sells. At this region of support, we will look for buys with other factors in confluence. Rest assured, a double bottom has been formed on the daily timeframe as well.

- Trendline: EURCHF had been priced within a descending channel. Prices continued moving in a zigzag pattern within the channel. Lately, it was testing at the descending support channel at the demand zone. At this point, we have two confluences for our long position. The resistance trendline is the area where we will set our profit target.

- Retracement: The golden retracement level of 75-78.6% has been breached to test the support. It is to be noted, candles have not closed and opened below the retracement area to validate the level breakout. Right below the levels, we have a demand zone. In this instance, we will still consider the retracement valid till we get the invalidation anchors from price action. We will partially consider this as our third confluence factor.

- EMA's: Both EMA’s are above the current price. This depicts a bearish bias. EMA’s are on the verge of a death cross. It is to be noted, both EMA’s are yet to be retested after the breakout. Therefore, our profit targets will be set based on the retest at the resistance level.

- RSI/CCI: Both oscillators have a divergence buy in confluence of the support level on the chart. When both oscillators form a divergence, there is a high probability for market to move in that direction.

EURCHF has 3 confirmations to go long. This is a high probability setup.

EURCHF at a daily demand zone

Jul 27 2021

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