Euro Swiss

I met a friend yesterday who had just taken out a short position on the EURCHF. I dont normally trend this cross because they tend to cancel each other out a lot and tend to go sideways. I had a look at the chart with him and asked him his basis of the short. He shorted due to the range bound movement over the last few months and was using RTC with entry stoploss technique. He has also done extremely well from this since August. So today I thought I would do an anlaysis on this chart.

On the daily chart yesterday we have a reversal candle. Nothing showing on Weekly. The daily is also giving us some MACD divergence and we hit a previous resistance high yesterday. Although I dont use Stochastics as it is mainly an oscillating indicator, in this case as the chart has got range bound characteristics I will use it and the Stochastics shows overbought (but no crossover to the downside yet).

From the previous swing high we are at a fib level and MOB has been tagged and we also had Ellipse hit. Time was shown for the 10th from the recent pivots (not shown on chart).

All in all I would wait a little bit for the market to take the momentum in a short direction before jumping on to this one personally but it I think it is worth putting this on to your watchlist for a potential short.

Once again, this cross cancels itself out a lot of the time and we will see range bound activity and even when it trends it does not trend hard so is not a big trend cross like some others. To give you an idea, since August it has only gone up 400 pips but the lack of volatility on this cross allows for larger than normal positions. However, that suggestion should only be used once you have done your own analysis and are satisfied with your own results and are fully aware of money management.


Chart courtesy of Advanced Get. Data provided by eSignal.

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Forex Team

Anne Chapman & Javid Shaik