EURCHF | Perspective for the new weekMultiple rejections at the Fr1.0300 level after a year-long of bearish momentum appears to be a sign that we might be on the verge of a reversal that might lead into a corrective phase of the bearish leading price action that began in March 2021.
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Reversal pattern (Triple bottom/Breakout)
Observation: i.Since March 2021, the Swiss franc recorded 7.8% growth over the Euro to confirm a long term downtrend.
ii. But after testing Fr1.03200 at the beginning of this year - 2022, we have witnessed the sharp rejection of this area from buyers which informs us of the seller's weakness thereby insinuating a possible reversal or retracement is imminent.
iii. FR1.05000 level which has been a niche for selling opportunity was finally broken at the beginning of this month ( February) to emphasize some potentials for the buyers.
iv. The third rejection of the Fr1.03200 area during last week's trading session appears to be the icing on the cake to go long
v. However, considering the long term downtrend involved in this situation, a conscious approach is required to take advantage of a bullish momentum when it finally happens.
vi. In this regard, a breakout/retest of the key level @ Fr1.04500 shall be a confirmation to join the rally... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 300 pips.
Risk/Reward : 1:5
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
