Today there was a clean bounce off the 61.8%, which goes to show strong bullish domination.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Trade Idea Details:
EUR/CHF symbol on the MT4 platform
Type: Bullish
Key support levels: 1.0635, 1.0600
Key resistance levels: 1.0660, 1.0700
Price Action:
Since EUR/CHF reached 1.0617 low on July 2, the price has been rising steadily while producing higher highs and higher lows. It managed to break and close above the previous level of resistance at 1.0661, where 200 Simple and Exponential Moving Averages were rejected. This shows that there is more upside potential and current pullback might provide an attractive opportunity for buyers.
Today price has corrected down to 1.0635, where it rejected 61.8% Fibonacci retracement level along with the uptrend trendline. Perhaps this level was the ideal in terms of Risk/Reward.
On the daily chart there are two Fibonacci retracement indicators, first applied to the 28.10.2019 – 16.04.2020 downtrend, and second is applied to the last wave up occurred between 25.05.2020 – 05.06.2020. There are two Fibonacci retracement levels that meet at the same price, which is 1.0782. These retracement levels are 38.2% and 50% Fibs. Maybe this level could act as a key medium to long term resistance for EUR/CHF and definitely should be considered as the upside target.
Potential Trade Idea:
The ideal entry point for buyers could have been right at the 61.8% Fib support which is located at 1.0635. As per the daily chart, the key resistance and potential upside target are located at 1.0782. In order to meet the 1:2 RR ratio, the stop loss could be placed not higher than 1.0575
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