The EURCHF daily chart shows a head-and-shoulders like pattern after the trendline break. I recon that the H&S patter should show at the end of a prolonged uptrend not within the prior downleg. The ‘neckline’ of this pattern is close to the level of the trendline breakout which means that the loss of that support will trigger further downside.
Tag Archives: reversal
I expect a bullish reversal on the EURCHF. The bearish trend was broken on the 1d timeframe with the breakout level being tested. The 4h chart still shows a downtrend with a possible reversal to the upside. Once the price breaks above the Keltner channel I will look for 15m pullbacks for long entries.