Forex Trading: EURCHF Is Ranging Within $1.141 and $1.134 Level, a Bullish Breakout Is Expected

Forex Trading: EURCHF Is Ranging Within $1.141 and $1.134 Level, a Bullish Breakout Is Expected
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EURCHF Price Analysis – May 08

Should the daily Bullish candle break up the drawn upper trend line and close above it, then, the bullish momentum will be able to place the price at $1.149 level.

EUR/CHF Market

Key levels:

Resistance levels: $1.141, $1.149, $1.157
Support levels: $1.134, $1.126, $1.116

 

EURCHF Long-term trend: Bullish

EURCHF is ranging within the descending channel on the long-term outlook. The EURCHF price was on the upward movement towards $1.149 as its target after broken up the support level of $1.134. The last week bullish momentum could not push the price further to reach its target. The price fell back to the previous low at $1.134 level. On May 06, the Bulls came up with high momentum and pushed up the price. The bullish candle formed today broke up the $1.141 level for the third time.

EURCHF daily chart, May 08

EURCHF is still trading above the 21 periods EMA and 50 periods EMA as a sign of a bullish trend. The distance between the currency pair and the two EMAs are reducing and this has led to the formation of a descending channel on the daily chart. The Moving Average Convergence Divergence period 12 is flat on the zero levels with the signal lines twisted together; this implies that ranging is ongoing in the EURCHF market. Should the daily Bullish candle break up the drawn upper trend line and close above it, then, the bullish momentum will be able to place the price at $1.149 level.

 

EURCHF medium-term Trend: Ranging

On the medium-term outlook, EURCHF is ranging. EURCHF is range-bound within the support level of $1.134 and the resistance level of $1.141. The ranging movement has formed a descending channel. There is a tendency for the breakout to occur at the upper trend line of the channel.

EURCHF 4-hour chart, May 08

The price is trading on and around the 21 periods EMA and 50 periods EMA. The MACD period 12 with its histogram is flat to the zero levels and the signal lines slightly point up to indicate buy.

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About AzeezMustaph

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Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management