The common European currency has reached a critical point against the Swiss Franc. The point can be best observed by drawing patterns on the weekly chart and examining them on the daily chart.
It can be seen that during the last surge of the Euro against the Franc the currency exchange rate has reached the combined resistance of a two year old ascending channel pattern and a junior channel up pattern at the 1.1520 mark. Moreover, the resistance cluster is strengthened by the weekly R1.
Either the pair will bounce off the resistance and decline down to the 1.1274 level, if the dominant pattern holds. On the other hand a break of the channel might occur, which would press for a full review of the pair for the purpose
Trade closed: target reached
⋅
The target was reached quite soon after the idea was posted. Namely in two days.
However, a full review of the pair is about to be posted by our analysts.