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 – 1.1570

As the single currency found renewed buying interest at 1.1485 and has risen again, suggesting near term upside risk remains for the rebound from 1.1388 to extend gain towards recent high at 1.1624, however, break there is needed to signal recent upmove has resumed and extend gain towards 1.1695-00 (61.8% projection of 1.0833-1.1538 measuring from 1.1260), having said that, loss of upward momentum should prevent sharp move beyond 1.1770-80 and reckon 1.1800-10 would hold from here, risk from there is seen for a retreat to take place later.

On the downside, below said support at 1.1485 would prolong consolidation and bring weakness to the upper Kumo (now at 1.1402), however, break of support at 1.1388 is needed to revive our bearishness and signal a temporary top has been formed at 1.1624, bring retracement of recent upmove to support at 1.1345, then towards 1.1300 but another previous support at 1.1259 should hold from here and euro shall head north again from there.

Recommendation: Exit short entered at 1.1520 for 1.1320 with stop above 1.1620.

On the weekly chart, although euro has continued edging higher after finding support at 1.1388, as long as last month’s high at 1.1624 holds, further consolidation would be seen and prospect of another retreat remains, below 1.1485 would bring weakness towards 1.1388, however, break there is needed to suggest a temporary top is possibly formed, bring test of 1.1345 support, once this level is penetrated, this would provide confirmation, bring retracement of recent rise to 1.1300, then towards another previous support at 1.1259 but price should stay above the Kijun-Sen (now at 1.1140) and bring rebound later.

On the upside, only break of said last month’s high at 1.1624 would signal the major rise from 0.8426 low has once again resumed and extend headway to 1.1695-00 (61.8% projection of 1.0833-1.1538 measuring from 1.1260), then towards 1.1760-70 but overbought condition should prevent sharp move beyond 1.1840-50 and reckon 1.1900-10 would hold from here, risk from there has increased for a retreat to take place later.