EUR/CHF Breaks Through Two Major Resistances, Aims Higher
2022.05.09 12:05
Last week, we could have seen a reversal in the Euro against a few crosses. EUR/USD resisted, but of course, the strength of the American currency didn’t help. EUR/USD still suffered, but our hero today is the EUR/CHF, which is very strong and gave us a proper, long-term buy signal.
Since March 2021, EUR/CHF has been in a downtrend, and since the end of February, the pair has been in a symmetric triangle pattern (red). After a series of bullish candles by the beginning of May, the price managed to escape from the triangle to the upside. That only encouraged buyers and increased the momentum allowing the price to rise further and break the mid-term down trendline (blue).
Breaking those two resistances is a great sign and an invitation to go long. The buy signal stays on the table as long as the price stays above the horizontal support on the 1.035 (orange). An alternative scenario includes the price coming back below the orange support, effectively giving us a sell signal. But the chance of that happening is now somewhat limited.
EUR/CHF daily chart.
