EUR/CHF continues to trade inside a falling wedge pattern from around the beginning of December. According to the TA books, such patterns tend to break to the upside, but until we do not get a break of the upper side of it, we would not be able to examine the upside. As long as the rate stays inside the pattern, we will continue looking south.
The pair might move a bit higher, but if the bulls cannot push it through the upper side of the wedge, this may result in another round selling, potentially bringing EUR/CHF to the 1.0840 area again. If the selling doesn’t stop there, the next support zone to consider could be the 1.0833 mark, or the lower side of the aforementioned wedge pattern.
Our oscillators, the RSI and the MACD, are giving us mixed signals. The RSI, although still below 50, started pointing and moving higher. The MACD is somewhat in support of the downside, as it remains below zero and trigger lines, while currently running flat. We will no put too much emphasis on the indicators, until we get a clear picture from both of them.
Alternatively, if we do see a clear strong break above the upper side of the falling wedge pattern, we will then aim for the 1.0904 barrier, which is near the highs of December 27th and 30th. The pair might stall around there, or even correct back down a bit. That said, if the pair remains above the upper side of the wedge, the bulls might re-enter the field and lift the rate up again. If this time the 1.0904 obstacle surrenders, its break could clear the way to the 1.0927 level, marked by the high of December 19th.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.