EURCHF Likely To Fall Further After Support & Trendline Break!
Oh make no mistake, technically most of the EUR related are starting to show a strong bearish pattern. EURUSD could tumble to 1.09000 level in the coming months even on the back of a weaker USD!.
The above link is shows the analysis behind the EURNZD which has a potential to drop. However since many central banks are shifting towards easing, typically in this scenario fundamentally makes the SAFEHAVEN FX currencies perform the best. CHF being one of the SAFEHAVEN alongside the JPY in my view would be best performers against the EUR in the coming months!
Have a look at the main chart weekly TF chart of the EURCHF. The horizontal lines are concrete support and resistance taken from the monthly TF. At the moment i am awaiting the monthly candle to close beneath the orange support located at 1.11000 level for added confluence. Furthermore, we have a long term trendline which has been violated on a weekly TF, for added confirmation that is why its advisable to wait for the monthly candle to close below orange line. This would confirm the broken support turned resistance and channel has been officially broken!
The next support lies at 1.06000 level, where the price could potentially head towards. This seems like a big PIP move but if you look at the fundamental factors, we are seeing the ECB shifting their monetary policy to accommodate the changes which would likely result in EURO depreciation over long term.
I am seeing the monthly would close comfortably beneath the support by the end of this month and then its advisable to execute the trade SHORT with the target of 1.06000 and RR of 1:1.
This just represent my analysis on this pair and i feel this a high probability trade setup in play. shall there be any trade entries i would post them in a new post.
The above link is shows the analysis behind the EURNZD which has a potential to drop. However since many central banks are shifting towards easing, typically in this scenario fundamentally makes the SAFEHAVEN FX currencies perform the best. CHF being one of the SAFEHAVEN alongside the JPY in my view would be best performers against the EUR in the coming months!
Have a look at the main chart weekly TF chart of the EURCHF. The horizontal lines are concrete support and resistance taken from the monthly TF. At the moment i am awaiting the monthly candle to close beneath the orange support located at 1.11000 level for added confluence. Furthermore, we have a long term trendline which has been violated on a weekly TF, for added confirmation that is why its advisable to wait for the monthly candle to close below orange line. This would confirm the broken support turned resistance and channel has been officially broken!
The next support lies at 1.06000 level, where the price could potentially head towards. This seems like a big PIP move but if you look at the fundamental factors, we are seeing the ECB shifting their monetary policy to accommodate the changes which would likely result in EURO depreciation over long term.
I am seeing the monthly would close comfortably beneath the support by the end of this month and then its advisable to execute the trade SHORT with the target of 1.06000 and RR of 1:1.
This just represent my analysis on this pair and i feel this a high probability trade setup in play. shall there be any trade entries i would post them in a new post.
