EUR/CHF Candlesticks and Ichimoku Analysis

Weekly

    •    Last Candlesticks pattern: Doji
    •    Time of formation: 20 Feb 2017
    •    Trend bias: Up

Daily

    •    Last Candlesticks pattern: Doji
    •    Time of formation: 1 Sep 2016
    •    Trend bias: Near term down

EUR/CHF – 1.0863

Failure to extend early rebound from 1.0838 and the subsequent retreat from 1.0910 suggest consolidation would be seen, however, as long as said support at 1.0838 holds, mild upside bias remains for another bounce to said resistance but a break of resistance at 1.0949 is needed to signal the pullback from 1.0988 has ended, bring test of 1.0960, break there would suggest upmove has resumed for retest of 1.0988, then towards previous resistance at 1.1001. Looking ahead, only a break there would retain bullishness and encourage for headway to 1.1050-60, then 1.1100, having said that, price should falter below another previous resistance at 1.1201.

On the downside, below 1.0838 support would risk test of previous support at 1.0792 but only a daily close below there would signal top is formed at 1.0988 instead, bring subsequent fall to 1.0750 and then towards 1.0700-10, having said that, support at 1.0671 should remain intact, the single currency shall stage another rebound from there later this month.

Recommendation: Hold long entered at 1.0865 for 1.1065 with stop below 1.0835.

On the weekly chart, despite this week’s initial marginal gain to 1.0910, lack of follow through buying and the subsequent retreat suggest consolidation would be seen and indicated support at 1.0838 needs to hold to retain prospect of another rebound, above 1.0910 would bring test of 1.0949 resistance but break there is needed to signal the pullback from 1.0988 has ended, bring retest of this level, above there would extend recent upmove from 1.0631 to previous resistance at 1.1001, a sustained breach above this level would signal the fall from 1.1201 has ended, bring further gain to 1.1100 and possibly test of resistance at 1.1129 but price should falter below said recent high at 1.1201. 

On the downside, a break of said support at 1.0838 would risk test of the Kijun-Sen (now at 1.0810) but only break of previous support at 1.0780 would abort and signal top has been formed at 1.0988 instead, bring further weakness to 1.0720, however, still reckon support at 1.0656 would remain intact, bring another rebound later.