EURCHF has been ranging, with plenty of fakeouts above and below the range. In this range, we can term it as an accumulation phase, from where market is gathering orders to go bullish. Given EURO is strong, we can assess the suitability of the EURCHF to go up. Right now, market is at a support level, within a range. This support level would be our long position.

EURCHF had a descending trendline, looming from last month. This trendline was broken out for buys. As it broke out, it needed to retrace. At the retracement level, we will go long. This trendline breakout buy is another confirmation for us to go long. It needs to be noted that this trendline breakout took place within a range.

The golden area of retracement of 75-78.6% is in confluence with the support level. This confluence will act as a catalyst for the push up.

Both the EMA’s are currently in a bearish trend, with a bearish death cross. The EMA 50 had been voided once for the bullish side. It needs to be noted that the bullish and bearish breakout took place within a range. Until the range is pierced on either side, we cannot determine the exact direction of the EMA. Meanwhile, the EMA 200

RSI and CCI, both are in a bearish region, RSI being at 38 and CCI at -90. We can further wait for market to either dip towards the over sold area or, break up above the neutral level.

EURCHF has bottomed out and is at a decent level to go long. This would be a good ratio risk to reward if market starts to surge from this level. It should be noted we are still in a range bound market and we need to see a break in either of the directions.

EURCHF buys from 1.0700

Oct 21 2021

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