The EURCHF completed a major ABCD pattern on the 4H chart recently, which implies the likely beginning of a new uptrend. The recent reversal from the support-turned-resistance level at 1.09850 offers another opportunity for bulls to go long at a new dip.
While the short term bias looks mostly bearish, exemplified by the breakdown below the 20-day MA (in red), the correction is yet to bottom out.
The longer-term bias is prevailingly bullish, with the pair likely to target the 1.10700 price level (previous peak at point C).
Traders can look to go long either at a new bottom around point D (1.09280), or more risk-averse traders can do so after the price breaks out above the 1.09850 threshold.
While the short term bias looks mostly bearish, exemplified by the breakdown below the 20-day MA (in red), the correction is yet to bottom out.
The longer-term bias is prevailingly bullish, with the pair likely to target the 1.10700 price level (previous peak at point C).
Traders can look to go long either at a new bottom around point D (1.09280), or more risk-averse traders can do so after the price breaks out above the 1.09850 threshold.