The common European currency has recently formed a narrow ranged ascending channel pattern against the Swiss Franc on the four hour charts. The reason for the formation of the channel was a rebound against a Fibonacci retracement level.
Namely, after reaching a new high level the Euro began a retreat against the Swiss Franc and eventually plummeted in the second half of September. By using that high level as the 00.00% Fibonacci level and the 2017 low level as the 100% mark, one could have predicted that the pair will rebound against the 1.1388 mark, where the 23.60% retracement is located.
Meanwhile, in regards to the short term, the pair is set to approach two pivot points until it makes another attempt at the 2017 high level.
Namely, after reaching a new high level the Euro began a retreat against the Swiss Franc and eventually plummeted in the second half of September. By using that high level as the 00.00% Fibonacci level and the 2017 low level as the 100% mark, one could have predicted that the pair will rebound against the 1.1388 mark, where the 23.60% retracement is located.
Meanwhile, in regards to the short term, the pair is set to approach two pivot points until it makes another attempt at the 2017 high level.
Comment:
The common European currency has bounced off the resistance of a dominant pattern against the Swiss Franc. In the aftermath of the bounce off the pair seems to have broken the support of a junior channel up pattern. As a result of the move a new descending pattern has revealed itself.
By looking at the pattern, it seems that, if the pair breaks free from the levels of significance near the 1.1620 mark, the currency exchange rate will start a gradual decline down to the support of the wedge. It should meet the dominant support level in the range from 1.1500 to 1.1550.
The common European currency has bounced off the resistance of a dominant pattern against the Swiss Franc. In the aftermath of the bounce off the pair seems to have broken the support of a junior channel up pattern. As a result of the move a new descending pattern has revealed itself.
By looking at the pattern, it seems that, if the pair breaks free from the levels of significance near the 1.1620 mark, the currency exchange rate will start a gradual decline down to the support of the wedge. It should meet the dominant support level in the range from 1.1500 to 1.1550.
As it was expected the rebound of the Euro against the Swiss Franc did not last in a narrow ranged channel up pattern. Instead over time the pair surge without an initially easy to spot pattern.
However, as the currency rate has reached the dominant resistance of a rising wedge pattern, it can be seen that there was an ascending channel pattern in the play.
In regards to the future outlook, the pair is set to bounce off the resistance of the rising wedge pattern and form a new junior pattern.