EUR/CHF Harmonic Pattern Analysis: Anticipating Bearish Reversal
Updated
___________________Technical Analysis of EUR/CHF__________________________
Harmonic Pattern Analysis:
EUR/CHF has recently formed an XABCD harmonic pattern, indicating a potential reversal in the current trend. This pattern has manifested itself alongside the key resistance area, suggesting a significant level where bearish pressure may intensify.
Entry Strategy:
Considering the formation of the harmonic pattern and the positioning of the price at the key resistance area, it is advisable to initiate a short position near 0.98010. This entry point aligns with the anticipated bearish move from point D of the harmonic pattern.
Risk Management:
To effectively manage risk, a stop-loss order should be placed near 0.98370. This level is strategically chosen to mitigate potential losses in case of adverse price movements beyond our anticipated entry point.
Profit Targets:
Profit-taking objectives are set as follows:
- TP-1: 0.97650
- TP-2: 0.97295
- TP-3: 0.96918
These profit targets are based on technical analysis and aim to capitalize on potential downward price movements in EUR/CHF.
Conclusion:
In conclusion, the technical analysis of EUR/CHF suggests a bearish outlook, with the formation of a harmonic pattern and price action near a key resistance area. By adhering to the outlined entry, risk management, and profit-taking strategies, traders can position themselves to potentially capitalize on the anticipated bearish move in the currency pair.
Harmonic Pattern Analysis:
EUR/CHF has recently formed an XABCD harmonic pattern, indicating a potential reversal in the current trend. This pattern has manifested itself alongside the key resistance area, suggesting a significant level where bearish pressure may intensify.
Entry Strategy:
Considering the formation of the harmonic pattern and the positioning of the price at the key resistance area, it is advisable to initiate a short position near 0.98010. This entry point aligns with the anticipated bearish move from point D of the harmonic pattern.
Risk Management:
To effectively manage risk, a stop-loss order should be placed near 0.98370. This level is strategically chosen to mitigate potential losses in case of adverse price movements beyond our anticipated entry point.
Profit Targets:
Profit-taking objectives are set as follows:
- TP-1: 0.97650
- TP-2: 0.97295
- TP-3: 0.96918
These profit targets are based on technical analysis and aim to capitalize on potential downward price movements in EUR/CHF.
Conclusion:
In conclusion, the technical analysis of EUR/CHF suggests a bearish outlook, with the formation of a harmonic pattern and price action near a key resistance area. By adhering to the outlined entry, risk management, and profit-taking strategies, traders can position themselves to potentially capitalize on the anticipated bearish move in the currency pair.
Trade active
Trade closed: target reached
All three profit targets reached.
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