EURCHF is headed south

[Naumnic]

In this piece, we will describe the situation on EURCHF, where a week ago we were waiting for a buy signal. We did not say that there'd be a buy signal right now, but we acknowledged the possibility: “As long as we stay below the Fibo mentioned above, sentiment will remain negative, but the breakout of this line will give us a proper buy signal." This is what we wrote back then. See forex trading calculator here!

Patience is the virtue of every trader. Usually, you need to wait for the proper signal. In this case, it did not happen and the price dipped lower. Thursday was decisive here. The price broke the lower line of the flag and the short-term horizontal support. That gave a boost to the sellers and cleared the way south. Monday is bringing us a breakout of the green line connecting the bottom of the head and the right shoulder. That represents the total cancellation of the positive sentiment and opens the way for us towards new yearly lows.

The sell signal will be cancelled when there is a breakout at the black line. That resistance has been connecting the most important lower highs since April. The chances of that are rather slim.
 

[herman.lopez]

USD/CHF Signals 11.21.18
Risk 0.75%.

Trades must be entered between 8am and 5pm London time today only.

Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9958 or 1.0013.

Put the stop loss 1 pip above the local swing high.

Adjust the stop loss to break even once the trade is 20 pips in profit.

Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

[herman.lopez]

USD/CHF Forecast and Analysis April 29 — May 3, 2019 implies an attempt to test the support level near the 1.0105 area. Then continued growth of USD/CHF to the area above the level of 1.0485. In favor of the rise will make a test trend line on the indicator of relative strength index (RSI). Cancellation of the growth option USD/CHF will be the breakdown of the support area and closing of quotes below the level of 0.9945. This will indicate a continuation of the fall of the pair with a potential target below the level of 0.9555.