EUR/CHF: Daily bearish engulfing candle makes it look good for the sellers

EUR/CHF produced consecutive two bearish candles on the daily chart. The first candle came out as a bearish engulfing candle, and the second one came out as a bearish Marubozu candle. The last swing low is far enough, which allows the price to travel a good distance towards the downside. Major intraday charts look good for the sellers as well. Thus, the pair may end up having another bearish day.


Chart 1 EUR/CHF Daily Chart


The chart shows that the price after finding its resistance at the level of 1.1020 produced a bearish daily engulfing candle. The next candle came out bearish as well. That one is even a bigger candle than the first one. The last swing low is at the level of 1.0860. This means the price has a lot of space towards the South to travel. It offers a bit less than 1:1 risk-reward to the sellers. However, major intraday charts look more lucrative for the sellers. Let us have a look at those.


Chart 2 EUR/CHF H4 Chart


The price after being very bearish has had a bounce at the level of 1.0925. It has been on consolidation now. It finds its resistance at the level of 1.0943. If the level produces an H4 bearish engulfing candle breaching yesterday’s lowest low, the H4 sellers may go short up to the level of 1.0892. In contrast, if the level gets breached on the H4 chart, the price may find its next resistance at the level of 1.0970. The sellers then may have to wait long to go short with good risk-reward.


Chart 3 EUR/CHF H1 Chart


The H1 chart shows that the price has been ranging. The price has had rejection at the resistance level several times. However, no strong bearish momentum has been created yet. The price may go to the resistance to create good bearish pressure and makes a breakout at the level of support. The H1 chart shows that the price may find its next resistance at the level of 1.0980, which offers better risk-reward to the H1 buyers than it does to the H4 traders.

The daily and H4 charts look lucrative for the sellers. The H1 chart looks lucrative to both. Considering overall bearish pressure, the H1 sellers may have the upper hand. If the H1 chart makes the downside breakout, most likely, the pair gets a very bearish day today. 



Try Secure Leveraged Trading with EagleFX!

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.


GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 


XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News

Forex Majors