We published a signal on 10th Aug with entry price at 1.0723, targeted destination at 1.0875 and stop loss 1.0684, unfortunately the market hit our stop loss and then took a bullish reversal from our major support zone 1.07054. The market did move in accordance to our article published on 4th August - depicting same bullish stance from the major support zone. After EURCHF had provided us with a breakout below 1.08547, its trend is mainly bearish based on the relative strength index and MACD in four hourly and daily time frame. EURCHF took an exit from the oversold conditions in four hourly time frame on 18th Aug but the recovery reached only 50 in relative strength index while also failing to break above exponential moving average 50. The awaited fundamentals of Euro ; French Flash Manufacturing PMI came out with below than expectation figure and French Flash Services PMI was only able to provide with 0.2 value more than the forecast but over all the neutral sentiments didnt affect Euro versus US dollar much and is still carrying some bullish momentum. The major events today were German Flash Manufacturing PMI and German Flash Services PMI, where the latter turned out to be week while the other showed increase by 0.5 in German Flash Services PMI. The aforementioned have uplifted Euro but is still failing to provide the same strength to Euro versus Swiss Franc. 

We are bullish on Euro versus CHF above our monthly support line i.e 1.07000 with our targeted destination at 1.08687. If the market was able to provide us with a bearish breakout below our monthly support then the next stop for EURCHF will be 1.06582 - that is where we have our 23.6% fibb retracement level and high supply demand zone. In daily time frame, the structure might be of an irregular correction with an awaited wave 'c' which might provide us with a closing near our exponential moving average 50 and 200 in daily i.e 1.08112-1.08745. The aforementioned targets have our lower and upper trend line situated at the same price action which can become a strong point of bearish continuation of trend. 

EURCHF

Aug 23 2021