Risks remain asymmetric longer term as the SNB holds the downside in check and a possible global recovery in 2021 may bring some relief to the EURCHF but in the meantime, it is evident that the Bullish momentum finally begins to make a statement in the market. I shall be looking out for a "quick" temporary counter-trend opportunity on this pair in the coming week in anticipation of a Bullish continuation. This bias is a result of the Bearish engulfing candle on Friday which broke down key level @ 1.07780 which also signifies a correction phase following the Bullish engulfing run on the 9th of Nov. 2020.
Tendency: Temporary Downtrend ( Bearish )
Structure: Breakdown | Pennant | Supply & Demand
Observation: i. Price moves upward with pivot highs and lows converging toward a single point giving the appearance of a Pennant pattern.
ii. Breakdown of this pattern suggests a possible Reversal which could be the correction phase of the Bullish Impulse leg on the 9th of Nov. 2020.
iii. Taking advantage of this setup might require patience for a correction/retest of Trendline or Key level @ 1.07780.
iv. I anticipate a target extension within a minimum of 50 - 61.8% retracement which might as well extend to a 78.6% depending on market condition(s).
Trading plan: SELL confirmation with a minimum potential profit of 60 pips.
Risk/Reward: 1:3.5
Potential Duration: 1 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Temporary Downtrend ( Bearish )
Structure: Breakdown | Pennant | Supply & Demand
Observation: i. Price moves upward with pivot highs and lows converging toward a single point giving the appearance of a Pennant pattern.
ii. Breakdown of this pattern suggests a possible Reversal which could be the correction phase of the Bullish Impulse leg on the 9th of Nov. 2020.
iii. Taking advantage of this setup might require patience for a correction/retest of Trendline or Key level @ 1.07780.
iv. I anticipate a target extension within a minimum of 50 - 61.8% retracement which might as well extend to a 78.6% depending on market condition(s).
Trading plan: SELL confirmation with a minimum potential profit of 60 pips.
Risk/Reward: 1:3.5
Potential Duration: 1 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
