EURCHF Bearish Butterfly Complete,Targeting Support Zone
Updated
EURCHF has completed a bearish butterfly right on Fed night, then started to fall after the German Election.
Good time to short the pair based on following fundamental factors:
Long positions are retreating, since the political risk is increasing because of expansion of right-wing forces during the election.
Upcoming dialogue between governor of ECB and BOE this week, rising uncertainty of long positions.
Rising yield gap between German-US 10Y since FOMC meeting, negative signal for future trend of euro.
1.2000 has been a crucial resistance level for export-oriented enterprises, where they may do hedging operations once the rate is above the level to lead their profit become less.
Technically:
Bearish Butterfly complete on daily chart, with negative pin bars above, seems to be early stage of the down trend of EURCHF.
Price has been created lower high and closed below the Kijun line of Ichimoku, bearish signal.
Bearish divergence on XD points and MACD, bearish signal.
At the beginning of the October, it is considerable to place a short position.
TP1:1.1410 (previous support level or neck line)
TP2:1.1310 (uppre edge of the cloud)
If the above support zone failed to hold the price, a bigger range correction of EURCHF will be expected.
Good time to short the pair based on following fundamental factors:
Long positions are retreating, since the political risk is increasing because of expansion of right-wing forces during the election.
Upcoming dialogue between governor of ECB and BOE this week, rising uncertainty of long positions.
Rising yield gap between German-US 10Y since FOMC meeting, negative signal for future trend of euro.
1.2000 has been a crucial resistance level for export-oriented enterprises, where they may do hedging operations once the rate is above the level to lead their profit become less.
Technically:
Bearish Butterfly complete on daily chart, with negative pin bars above, seems to be early stage of the down trend of EURCHF.
Price has been created lower high and closed below the Kijun line of Ichimoku, bearish signal.
Bearish divergence on XD points and MACD, bearish signal.
At the beginning of the October, it is considerable to place a short position.
TP1:1.1410 (previous support level or neck line)
TP2:1.1310 (uppre edge of the cloud)
If the above support zone failed to hold the price, a bigger range correction of EURCHF will be expected.
Trade active
Price is falling as expected, hold or use trailing stop to let your profit fly
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