EURCHF Trend Reversal- Long Position
Updated
I believe that the EURCHF 0.04% is going to see an increase in pips in the next day. As you can see several of the bearish candles all break the lower bound of the bollinger band , creating a bearish trend . Additionally, the Stock Oscillator shows that during this bearish trend , this currency pair is being oversold. These two indicators show that there is going to be a trend reversal, and the conformation of this trend reversal is supported by the bullish candles shadow at 2018-02-27 22:00:00 being well over 20% more than the previous bullish candles shadow but closing at a higher price. We can expect to see a short period of consolidation in the next upcoming hours but after this the retracement action will begin. With this being such a strong move with 13 bearish candles, we could expect to see a rise in pips well over 0.50 fib level.
Note
The EUR base currency correlates directly with gold and if we were to look at the chart for gold we would see a strong bearish trend ( just like this one ). With the vast amount of volume traded in gold, it’s corrolation to this trade helps prove that there will in fact be a reversal in trend to a bullish. Gold is currently going through the second phase of reversal , “consolidation phase” , as the same with EURCHF pair right now. It is after this that we can expect to see the start of a bullish trendTrade closed: target reached
Has pushed past the 0.5 fib level, I tend to take profit here. Looks as if it could break the 0.618 level as well though
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