EUR/CHF: An intense battle ahead between buyers and sellers
|EUR/CHF produced a bullish engulfing candle yesterday after being bearish for a long time on the daily chart. The daily traders are to wait for the price to consolidate and produce another bullish daily candle to offer them entry. However, the H4 and the H1 traders may keep an eye to go long on the pair.
Chart 1 EUR/CHF Daily Chart
The chart shows that it made a long bearish move. The level of 1.06770 held the price and produced a bullish engulfing candle. Thus, the sellers are to wait for the chart to create a bearish reversal candle and a breakout at the level of 1.06770 to go short again on the pair. The buyers are to wait for the price to consolidate and a bullish reversal candle along with a bullish breakout to go long on the pair. Meanwhile, the buyers on the H4 chart may find opportunities to go long on the pair.
Chart 2 EUR/CHF H4 Chart
The chart shows that the price has been heading towards the North upon producing a bullish engulfing candle. The level of 1.07100 may work as a level of resistance. The level of 1.07100 may hold the price as support. If the price consolidates between these two levels and makes a bullish breakout upon producing an H4 bullish reversal candle, the buyers may push the price towards the North further. It may find its next resistance at the level of 1.07570. On the other hand, if the price makes a bearish breakout at the level of 1.07100, it may get choppy for a while on the H4 chart.
Chart 3 EUR/CHF H1 Chart
The chart shows that the price produced a morning start and headed towards the North with good bullish momentum. On its way, it consolidated and continued its bullish journey on several occasions. It seems that the price may have found its resistance at the level of 1.07310. The level of 1.07215 may work as a level of support. A bullish reversal candle around the support followed by a breakout at the level of resistance may attract the buyers to push the price towards the North as well. The price may find its next resistance at the level of 1.07465.
The daily chart produced a strong bullish reversal candle, but the bear still holds the key. On the other hand, the H4 and the H1 chart look bullish biased. These two charts may change the equation on the daily chart. Considering these three charts, it seems it is going to be a good battle between the daily sellers versus major intraday charts’ buyers.
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