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 – 1.0923
As the single currency has staged a strong rebound after finding good support at 1.0833 and broke above indicated resistance at 1.0910, retaining our bullishness and signaling low has been formed at 1.0833, hence further gain to resistance at 1.0949, break there would confirm 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, expect pullback to be limited to 1.0875-80 and support at 1.0833 should remain intact, bring another rebound. Below 1.0833 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.
Recommendation: Hold long entered at 1.0865 for 1.1065 with stop below 1.0835.
On the weekly chart, this week’s rebound looks set to form a long white candlestick and gain to 1.0949 resistance would be seen, break there would 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, whilst pullback to the Tenkan-Sen (now at 1.0890) cannot be ruled out, said support at 1.0833 should remain intact, bring another rebound later. A break of said support at 1.0833 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.
