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 – 1.1695
As the single currency has surged again after finding support again around the Tenkan-Sen, the breach of previous resistance at 1.1624 adds credence to our view that recent upmove has resumed and upside bias remains for medium term upmove to extend further gain to 1.1770-80, then 1.1800-10, however, loss of upward momentum should prevent sharp move beyond 1.1850-60 and reckon 1.1900 would hold from here, risk from there is seen for a retreat to take place later.
On the downside, whilst pullback to 1.1650 is likely, reckon the Tenkan-Sen (now at 1.1596) would limit downside and bring another rise later. A daily close below the Kijun-Sen (now at 1.1547) would defer and suggest a temporary top is possibly formed instead, bring weakness to 1.1520-25 but only break of 1.1485 support would confirm and bring retracement of recent rise to 1.14225-30, then towards support at 1.1388 which is likely to hold form here.
Recommendation: Buy at 1.1600 for 1.1800 with stop below 1.1500.
On the weekly chart, the single currency finally penetrated resistance at 1.1624, confirming medium term upmove from 0.8426 low has resumed and bullishness is seen for further gain to 1.1760-70, then 1.1800-10 but overbought condition should prevent sharp move beyond 1.1840-50 and reckon 1.1900-10 would hold, price should falter well below 1.2000, risk from there has increased for a retreat to take place later.
On the downside, whilst pullback to 1.1600-10 cannot be ruled out, reckon 1.1570 would contain downside and bring another rise later. A weekly close below the Tenkan-Sen (now at 1.1526) would suggest top is possibly formed, break of support at 1.1485 would add credence to this view, bring retracement of recent rise to 1.1388, below there would provide confirmation, then further fall to 1.1345 support would follow. Looking ahead, once this level is penetrated, this would turn outlook bearish for further subsequent decline to 1.1300, then towards another previous support at 1.1259.
