Price trend higher continues for the pair

The EURCHF moved above its 100 day MA for the last time back on January 29 and has stayed above that level since that time. 

On February, 10 February 12, and February 16, the price moved close to that moving average line, but found buyers.  Since the last swing low on February 16, the price has moved up from a low of 1.0786 to a high today of 1.09640.  

Looking at the hourly chart below, the price moved above the 100 and 200 hour MAs on February 17 and has not sniffed those lines since then.  The price rise has been steep.  

Drilling to the 5 minutes chart, most of the price action in the trend move to the upside has stayed above the 100 and 200 bar moving averages (blue and green lines).  Yes, there was a dipped back below the 200 bar moving average yesterday, but after the price move back above the moving averages, the price has mostly stayed above those moving averages through today's trading (there was a dip in the early Asian session). 

The run to the upside today has seen it to trend like moves. The 1st one started at 1.08936 and extended to 1.09482. The correction off that high stalled near the 38.2% retracement of that moved to the upside. The 2nd run to the upside started most recently at 1.09298 and extended to 1.09640. The 38.2% – 50% retracement area comes in between 1.09509 and 1.09485. It would take a move below that area to tilt the intraday bias more to the downside. Also, a move below the 100 bar moving average (currently at 1.09407) would weaken the shorter-term technical bias.

Until those levels can be broken, the buyers still remain in firm control.

EURCHF on the 5 minutes chart

Finally, taking a broader look at the daily chart below, if the buyers are to keep in control, the 50% retracement of the move down from the April 2019 high comes in at 1.09864. That would be the next key target on the topside to get to and through

EURCHF on the daily chart
Invest in yourself. See our forex education hub.



Source link

×