EUR/CHF 4H Chart: Encounters unclear resistance
The common European currency is still being supported by a medium term trend line against the Swiss Franc. However, recently there have been new developments.
The pair seems to be being held back by the resistance of the 1.1720 mark. Although, no clearly visible explanation for the existence of the resistance can be seen.
Most recently the pair found support in the combination of the weekly PP and the 55-period SMA at the 1.1660 mark. Due to that reason another approach of the before mentioned resistance is about to occur.
The pair seems to be being held back by the resistance of the 1.1720 mark. Although, no clearly visible explanation for the existence of the resistance can be seen.
Most recently the pair found support in the combination of the weekly PP and the 55-period SMA at the 1.1660 mark. Due to that reason another approach of the before mentioned resistance is about to occur.
Comment:
The previously described and mysterious support line on the EUR/CHF currency pair chart has done its work. However, another important trend line has been noticed.
The currency rate faces a resistance line, which is of similar scale than the previously described trend line. This trend line together with the previously described support are creating a medium scale triangle pattern.
However, to which side the pair will break out is quite unclear, as for that the larger scale situation should be looked at. Meanwhile, look up how to actually trade triangle patterns.
The previously described and mysterious support line on the EUR/CHF currency pair chart has done its work. However, another important trend line has been noticed.
The currency rate faces a resistance line, which is of similar scale than the previously described trend line. This trend line together with the previously described support are creating a medium scale triangle pattern.
However, to which side the pair will break out is quite unclear, as for that the larger scale situation should be looked at. Meanwhile, look up how to actually trade triangle patterns.
Comment:
On the Dukascopy chart for the common European currency against the Swiss Franc one can also see a failed forecast. The reason for that is the fact that the expected break out from a triangle pattern did not cause the expected effect.
Instead what occurred was a false break out. The currency exchange rate suddenly passed the support line of the triangle pattern and began to move lower. However, it was stopped by the support of the weekly S1.
As soon as the decline was stopped, the currency exchange rate began a surge up to the upper trend line of the triangle pattern and has recently even passed it. The reason for that might be the fact that potential short sellers closed their positions, as the break out failed.
Instead what occurred was a false break out. The currency exchange rate suddenly passed the support line of the triangle pattern and began to move lower. However, it was stopped by the support of the weekly S1.
As soon as the decline was stopped, the currency exchange rate began a surge up to the upper trend line of the triangle pattern and has recently even passed it. The reason for that might be the fact that potential short sellers closed their positions, as the break out failed.
The Euro has one particularity against the Swiss Franc. There are no short or medium scale patterns. Instead only one medium term support trend line has been spotted.
The medium term trend line was spotted, as the currency exchange rate plummeted at the turn of the month. However, it is irrelevant to short term traders.
In regards to the short term, the currency exchange rate has found support in the weekly R1 at the 1.1701 mark. Due to that reason it should surge up to the upper trend line of a dominant pattern above the 1.1740 mark.