Pair: EUR/CHF
Timeframe: 4H
Platform: OANDA
The EUR/CHF pair has recently broken out of a descending channel, signaling a potential bullish reversal. After a sustained downtrend, price action has formed a strong base and pushed above the upper boundary of the falling wedge/channel, indicating that buying pressure is building.
Key Observations:
Breakout Confirmation: Price has successfully broken out of the descending trendline, suggesting a shift in market sentiment from bearish to bullish.
Bullish Pathways: Two possible bullish trajectories are illustrated:
A direct move toward the 1st target at 0.95000, followed by continuation to the final target at 0.96500.
A retest of the breakout zone before rallying toward the upper targets, offering a more conservative long entry.
Levels to Watch:
Current Price: 0.93700
1st Target: 0.95000
Final Target: 0.96500
Support Zone: 0.92250 – 0.92000
(If price revisits this area, it could offer another buying opportunity or invalidate the bullish scenario on a strong breakdown.)
Conclusion:
This setup presents a solid risk-to-reward opportunity for bullish traders. A clean breakout from a well-defined structure often precedes significant moves. However, traders should monitor for a possible retest and manage risk accordingly.
Let me know in the comments how you're planning to trade this setup.
Timeframe: 4H
Platform: OANDA
The EUR/CHF pair has recently broken out of a descending channel, signaling a potential bullish reversal. After a sustained downtrend, price action has formed a strong base and pushed above the upper boundary of the falling wedge/channel, indicating that buying pressure is building.
Key Observations:
Breakout Confirmation: Price has successfully broken out of the descending trendline, suggesting a shift in market sentiment from bearish to bullish.
Bullish Pathways: Two possible bullish trajectories are illustrated:
A direct move toward the 1st target at 0.95000, followed by continuation to the final target at 0.96500.
A retest of the breakout zone before rallying toward the upper targets, offering a more conservative long entry.
Levels to Watch:
Current Price: 0.93700
1st Target: 0.95000
Final Target: 0.96500
Support Zone: 0.92250 – 0.92000
(If price revisits this area, it could offer another buying opportunity or invalidate the bullish scenario on a strong breakdown.)
Conclusion:
This setup presents a solid risk-to-reward opportunity for bullish traders. A clean breakout from a well-defined structure often precedes significant moves. However, traders should monitor for a possible retest and manage risk accordingly.
Let me know in the comments how you're planning to trade this setup.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.