EUR/CHF – Looking for an upside move to sell into
|I love it when the charts, baskets, timeframes line up. Correlation is king for me.
Going into the figures, the Euro basket looks like it has ample scope to move higher. I am looking at this as an opportunity to get short in EURCHF.
Let’s look at the charts.
The Euro basket 4-hour looks to be forming a bearish Butterfly pattern. To complete, we would need to see an upside move towards the 1.618% and 2.24% confluence zone (black arrow). This is temporarily bullish for Euro.
The CHF basket 8-hour has ample scope to run up to the Gartley completion.
This gives us a bias to sell rallies in Euro and Buy CHF or sell EURCHF rallies.
EURCHF 8-hour chart and we have a double barrier at 1.0070. With a stop placed above the swing high, focusing on the Butterfly target of 0.9740, this gives a return rate of 8.68R.
Entering short 1.0070 Stop 1.1008 Target 0.9740.
The 0.9740 target gives us a pivot for the daily Bat (BC leg).
The daily Bat completion gives us a pivot for the BC leg of the weekly Gartley. This is perfect correlation and a very rare view.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.