EUR/CHF Candlesticks and Ichimoku Analysis

Weekly

    •    Last Candlesticks pattern: Long white candlestick
    •    Time of formation: 24 Jul 2017
    •    Trend bias: Up

Daily

    •    Last Candlesticks pattern: Morning doji
    •    Time of formation: 25 Jul 2017
    •    Trend bias: Up

EUR/CHF – 1.1399

As the single currency found support at 1.1259 and has staged a strong rebound, suggesting the pullback from 1.1538 has possibly ended there and consolidation with mild upside bias would be seen for gain to 1.1444, however, break of resistance at 1.1479 is needed to add credence to this view, bring retest of this level later. Only a break of said recent high at 1.1538 would confirm recent upmove has resumed and extend headway to 1.1600-10, having said that, further sharp move beyond 1.1700 should not be repeated and price should falter below 1.1770-80, bring retreat later.

On the downside, whilst pullback to the Tenkan-Sen (now at 1.1369) cannot be ruled out, reckon support at 1.1343 would limit downside and bring another rise later. Below 1.1320 would risk weakness towards said support at 1.1259 but only break there would abort and extend the corrective fall from 1.1538 top for retracement of recent upmove to 1.1185 (50% Fibonacci retracement of 1.0833-1.1538), however, sharp fall below 1.1100-05 (61.8% Fibonacci retracement) should not be repeated and 1.1050 would hold, bring rebound later. 

Recommendation: Buy at 1.1355 for 1.1555 with stop below 1.1255.

On the weekly chart, the single currency traded narrowly after retreating from recent high at 1.1538, retaining our view that consolidation below this level would be seen, however, support at 1.1259 should contain downside and bring another rise later, above 1.1479 resistance would signal the pullback from 1.1538 has ended and bring retest of this level. Only a break of this recent high would revive bullishness and extend the major rise from 0.8426 low for headway to 1.1590-00, then towards 1.1700-10, however, overbought condition should prevent sharp move beyond 1.1800 and reckon 1.1900-10 would hold from here, risk from there has increased for a retreat to take place later. 

On the downside, expect pullback to be limited to 1.1320-25 and bring another rise later. Below said support at 1.1259 would bring test of the Tenkan-Sen (now at 1.1192), break there would defer and suggest a temporary top is formed instead, bring retracement of recent rise to 1.1100-05 (61.8% Fibonacci retracement of 1.0833-1.1538), then test of the Kijun-Sen (now at 1.1087) but reckon support at 1.0987 would remain intact.