OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/CHF Price Analysis: Eyes recovery rally with triangle breakout on 1H

  • EUR/CHF's hourly chart is reporting a triangle breakout.
  • The RSI on the 4-hour chart has diverged in favor of the bulls. 
  • A corrective bounce could be in the offing. 

EUR/CHF's sell-off seems to have run its course and a corrective bounce could be in the offing, technical charts indicate

To start with, the hourly chart shows a symmetrical triangle breakout, a bullish reversal pattern. 

Further, the 4-hour chart relative strength index (RSI) has produced a bullish divergence, which occurs when the indicator prints higher lows, contradicting lower lows on price. 

A bullish divergence indicates seller exhaustion and often paves the way for a corrective bounce. What's more, the 14-day RSI is reporting oversold conditions with a below-30 print. 

So, it appears as though the sell-off the December 2019 high of 1.1027 has run out of steam at 1.0729 - the 33-month low reached on Monday. 

The pair may rise to the descending 10-day average at 1.0771. The bearish view would be invalidated only if the spot manages to close above that bearish MA. 

Hourly chart

Trend: Oversold bounce

Technical levels

 

Gold Price Analysis: Firm above 10-day SMA, 23.6% Fibonacci in focus

Following its sustained bounce off 10-day SMA, Gold prices seesaw near $1,560/61 during Tuesday’s Asian session.
Read more Previous

When is the BOJ rate decision and how could it affect USD/JPY?

The Bank of Japan (BOJ) will release its latest monetary policy meeting decision together with the fourth quarter (Q4) Outlook Report approximately at 03:00 GMT
Read more Next
Start livechat