EUR/CHF just broke above its descending trend line and appears to be climbing above its double bottom neckline, too!
How high can it go from here?
Take a look at these potential upside targets on the 4-hour time frame.
EUR/CHF: 4-hour
EUR/CHF 4-hour Forex Chart by TradingView
This euro pair appears to be bracing for a major reversal after breaking above a descending trend line that had been holding since September, as price is also piercing through the neckline of a double bottom.
In addition, the 100 SMA just crossed above the longer-term 200 SMA to suggest that bulls are gaining the upper hand.
Or will the ceiling at the area of interest still hold?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
If R1 (.9340) continues to hold as resistance, look out for a potential retest of the broken trend line around the .9300 handle or pivot point level (.9280) where more euro bulls could be waiting to jump in.
Sustained upside momentum past current levels could take EUR/CHF up to the next bullish target at R2 (.9380) then R3 (.9450) which coincides with a minor psychological level.
Don’t forget that the euro region has a handful of preliminary inflation and growth data lined up before the week comes to a close, possibly dictating the shared currency’s near-term direction, while the Swiss KOF economic barometer and GDP could also push the franc around.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.