Euro versus Swiss Franc broke below monthly and yearly support of 2020 July and November i.e 1.0600 and 1.0660 respectively with an impulsive dovish stand. Swiss Franc took strong advantage of the Euros weakness due to multiple fundamentals - driving it below the exponential moving averages 50 and 200 after tackling 61.8% fibo retracement level. After the pair broke above 50% and 61.8% fibo retracement levels at 1.0797 and 1.0882, the pair was expected to continue its bullish trend but unfortunately Euro was taken strongly by the bears while failing to conquer 1.1160. From the current market structure in accordance to the elliot wave pattern, we can see that the pair is in the final 5th bearish impulsive wave pattern and broke below 23.6% fibo level at 1.0607, indicating that its next strong will be at 1.05097. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

As we mentioned in the market forecast above, the pair is in its final 5th bearish wave of minor degree in the daily time frame while in higher degree on the interday charts with more chances of the rally ending at 1.05097. We cannot project any further losses than the aforementioned price because of high liquidity and supply demand presence in that zone. For the bullish side, Euro will have to drag Swiss Franc above 61.8% fibo retracement level, exponential moving average 200 in the daily time frame and 1.0980, which would confirm the beginning of hawkish trend. For the interday traders, EURCHF has entered the oversold conditions in relative strength index on daily and interday charts, one can take positions if the pair retraces with strong bullish candle above 1.0600 with target destination at 1.06368. 

EURCHF In The Final Bearish Wave

Oct 29 2021