Euro / Swiss FrancShort
Technical Talk - EUR/CHF Cross Drawn to Bearish Pattern Structur
The EUR/CHF cross echoes a strong downside vibe at the moment.
Monthly Descending Triangle Completed
Not only has price traded southbound since late 2007, but movement on the monthly timeframe closed south of the lower edge of a descending triangle last month, extended from CHF1.0097 to CHF0.9435. This also nudged the currency pair to all-time lows of CHF0.9254 and pencilled in a third successive month in negative territory.
While the monthly chart delivers a long-term bearish cue (with traders likely to begin applying a downside target based on the descending triangle [base value extended from the breakout point]), things are also heating up on the daily timeframe.
Buyers and sellers out of the daily chart have been busy carving out a potential bearish pennant formation between CHF0.9341 and CHF0.9254. As you can see, we have yet to see price action complete this pattern, and the unit is now actually testing the upper limit of the aforementioned structure.
Bearish Vibe: Sellers from Daily Bearish Pennant Pattern?
Ultimately, assuming monthly bears hold beneath the descending triangle pattern, sellers could be drawn to the upper limit of the daily timeframe’s bearish pennant formation today and eventually push for a breakout lower, a move adding weight to the monthly bearish pattern.
Monthly Descending Triangle Completed
Not only has price traded southbound since late 2007, but movement on the monthly timeframe closed south of the lower edge of a descending triangle last month, extended from CHF1.0097 to CHF0.9435. This also nudged the currency pair to all-time lows of CHF0.9254 and pencilled in a third successive month in negative territory.
While the monthly chart delivers a long-term bearish cue (with traders likely to begin applying a downside target based on the descending triangle [base value extended from the breakout point]), things are also heating up on the daily timeframe.
Buyers and sellers out of the daily chart have been busy carving out a potential bearish pennant formation between CHF0.9341 and CHF0.9254. As you can see, we have yet to see price action complete this pattern, and the unit is now actually testing the upper limit of the aforementioned structure.
Bearish Vibe: Sellers from Daily Bearish Pennant Pattern?
Ultimately, assuming monthly bears hold beneath the descending triangle pattern, sellers could be drawn to the upper limit of the daily timeframe’s bearish pennant formation today and eventually push for a breakout lower, a move adding weight to the monthly bearish pattern.
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