July 30 , 2018
Recently the EUR/CHF pair has failed around its 200 day moving average line and the 50% retracement we will assume that strength since May was corrective only and that the market is ready to resume its down side move. This suggests some near term slippage back towards the south side.
By applying the Fibonacci retracement line from 1.1975 level to 1.1375 level we can observe that pair has retraced almost 50% and given a signal of reversal so here we are expecting that it may fall down as it is already sustaining below the moving average lines. A bearish marabuzo candlestick on the daily technical chart is suggesting that a steep downfall is about to come and all the preparation has done for downfall.
From technical prospective we can see that the Head and Shoulder pattern is in process of formation, the current swing is nothing but the right shoulder and if it is really a head n shoulder pattern so to prove the authenticity it will fall down at least 1.1365 level.
Odds are in favor of bears. Intraday bias remains bearish on the pair and we will get further bearish confirmation once pair trade and settles below 1.1550 level.A bearish crossover on MACD indicator is favoring the bears and providing trend reversal signal for the time being and RSI is also providing bearish signal from negative territory. The 1.1700 level is immediate resistance level followed by 1.1800 whereas 1.1500 level is strong key support level followed by 1.1400 level.
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