EURCHF experienced a successful breakout after long-term consolidation in the market. A bullish displacement pierced through the resistance trendline like a hot knife through butter on the 11th of January.
EURCHF’s uptrend started on September 29th with the appearance of three white soldiers. The stochastic indicated that the market had been oversold, resulting in a sharp upward movement. The impulsive move was followed by a correction back to 0.96470. The market retraced to test the Moving Averages (periods 89 and 200) after their cross.
The second impulsive wave was initiated on October 12. The market rallied from 0.96470 to the resistance level of 0.99500. The correction phase kicked in immediately afterwards. Lower highs and higher lows formed a symmetrical triangle. A bullish breakout followed the correction phase. The impulsive move only lasted for a few days.
EURCHF Long-term Trend: Bearish
The market has dived from the resistance level at 1.01520. The market is currently testing the border of the symmetrical triangle. A bullish reversal is expected as the stochastic is almost oversold.
