Approaching Strong Support

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Updated: 19 February 2020

Good day traders! The EUR/CHF currency pair turned lower in April 2018 after price retraced the previous range of the flash crash that occurred back in January 2015.

Price then found temporary support at a 50% Fib retracement level and the lower median line of a pitchfork during September last year.

Price is currently trading slightly above the lower median line again and momentum divergence is starting to set in. EUR/CHF could find support within the 1.0540 – 1.0660 price zone or even reach the 0.618% Fib retracement level before a corrective bounce takes place.

Conclusion

Although I expect a corrective bounce sometime soon, my long-term bias remains bearish. Any correction to the upside could provide us with another selling opportunity.

Bias: Bearish

Potential support zone: 1.0540 – 1.0660

Until next time, happy and safe trading!

Richard Krugel