Trade Leader Or Kahana presents technical analysis of EUR/CHF.
EUR/CHF is not like any other pair. Most of the time the price is held in a tight range. Please notice the most important highlights when trading in this pair:
- Recently, the average daily range is about 15 pips.
- Using the short time frames (15M to H1) in order to find entries. [I am using the hourly chart.]
- Use more than one indicator to find good entries. [When the graph is held in a tight range, some indicators will provide you with false entries.]
- The pair is for scalping.
- Hedging is possible.
- Patience and perseverance are necessary. Some trades can reach to their targets after a long time. If you are already holding a trade in EURCHF for a quite some time, you need to make an adjustment of the take-profit in order not to lose due to the interest.
EURCHF painted a bearish pattern in the monthly chart suggesting a nice decline to 1.2071. The graph usually moves between the upper Bollinger Band to the lower band and the contrary. In this case, EURCHF monthly graph began its movement in the upper band, closed a candlestick below the 20MA (the middle band) and should reach the lower band price level.\
In addition when observing the Woodie's CCI weekly chart, one can see that there was an extreme movement upwards, the 50CCI (in black) toke off to 550CCI area.
In most cases, when the 50CCI reaches to the 200CCI, it will also reach the -200CCI.
I will monitor the hourly chart looking for a bearish entry. I am using a few indicators to help me to prefect my entries: Bollinger Bands, Woodie's CCI and Moving Averages (MA) and the best is to combine them with Japanese patterns (if created).
The final target is at 1.2071. As mentioned above, this pair is for scalping so the final target should not be used as your take-profit. Monitoring the short time frames (15M – H1) will provide you enough entries that in total could give you an opportunity for nice profits.