EURCHF has move very nicely in accordance to our analysis published on 4th Aug, calling for some strong bullish indications that provide multiple hawkish sentiments to the pair for an upside move. We anticipated that the market  was 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 had a bit of space for the pair to create highly oversold conditions and then move bullish. We also mentioned that EURCHF had completed its 5 wave bearish structure but the tricky part was 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 had reached its end and the market took a reversal from our published price action.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

EURCHF is still moving in our favour with temporary hurdles like exponential moving average 200 in four hourly chart hovering above our current market price, while the relative strength index in daily and four hourly chart - both are showing overbought conditions. This status of the pair woiuld lead it towards a minor bearish correction before extending its gains towards our targeted destination i.e 1.08754. After a short dovish correction, we would be looking forward to exponential moving average 50 and 200 in daily time frames with prices at 1.0850 and 1.08901-1.09000. The aforementioned levels in daily have the lower base of our ichimoku cloud and lower trend line as well (the point of breakout) which can become a point of bearish trend continuation again so we will be taking an exit from our buying positions from there. 

EURCHF

Aug 10 2021

Stop Loss -0.36%

Holding time 5d13hr

1.07230

Entry price

1.06840

Stop loss price