Euro has been showing alot of weakness against swiss franch since last March and hasnt yet gained a strong excuse to favor the hawks and pull the pair with bullish sentiments. EURCHF made its highest high in daily followed by divergence late in march, the pair turned strongly dovish and broke out below its daily low at 1.10000. The pair firstly consolidated itself below the weekly exponential moving average 200, followed by a bullish reversal after reaching for the exponential moving average 50 but ultimately broke our lower trend line 1.08616 to enter into bearish trend. From current market scenario, the market is way below our daily exponential moving averages 50 and 200, while settling in the oversold conditions according to the relative strength index in four hourly and daily time frame. Relative strength index in weekly still has bit of space for the pair to create highly oversold conditions and then move bullish. CHFJPY according to the wave patter has completed its 5 wave bearish structure but the tricky part is that it was a complex structure with no clear lows and can be taken more as a part of swing trading techniques with "wxy" and "wxyz" waves. By all conditions, the bearish structure is reaching its end and the market will reverse upto our ichimoko clouds low i.e 1.08100 and then higher to the price of major breakout at 1.08616.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : 

From the current market scenario, we are expecting that CHFJPY will revert itself from the oversold conditions in daily by generating bullish sentiments from our major support area i.e 1.07000. We will be waiting for a bullish fractal confirmation that will mark a prominent end of the bearish rally and initiation of a bullish corrective structure. MACD is also supporting our stance for indicating the same perspective from the bearish bars being gradually reversed towards creating an atmosphere of bullish bars in process. 

EURCHF D1

Aug 04 2021