EURCHF – Breaks the channel formation to the downside
|Technical
Monthly: EURCHF has staged a strong recovery since posting a low in January 2015. The rally has stalled, and a reversal posted from levels close to the 78.6% Fibonacci pullback of 1.2010. June and July posted indecisive Inside Bars with all trading in the lower half of the May candle range. Marabuzo resistance (mid-point from the open and close) is located at 1.1745. Downward momentum from 1.1714 has resulted in the previous slow being broken (1.1368).
Weekly: Looks to be forming a bearish Head and Shoulders pattern. A clear break of 1.1319 is needed to confirm the outlook. This formation has a measured move target of 1.0700. Last week’s Marabuzo level is located at 1.1425.
Daily: We look for a bearish 5 wave Elliott wave count to be completed at 1.3668. Immediate price action to the upside has been mixed and volatile, common in corrective formations. We failed to reach the AB=CD formation target of 1.1762. We have broken the channel formation to the downside. Reverse trend line resistance is located at 1.1488. Bespoke resistance at 1.1455. Selling into rallies offer good risk/reward.
Action:
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We look to Sell at: 1.1455
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Stop: 1.1535
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Targets: 1.1000 and 1.0700
Article produced by Pia First for Orbex Limited
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