EUR/CHF TECHNICAL FORECAST UPDATE. PRICE BACK INTO THE PREVIOUS RANGE.

EURCHF has been on my watchlist for the past few weeks. It's playing out according to plan. Price broke out of the daily range last three weeks but it came back into it nicely, using the 200-day MA as support.

From the chart above, 1.08800 is a good support level. Price reacted from it and moved back into the previous range. 1.1000, which is the top of the range is the next resistance level to be watchful of.

The 50-day MA was used as support on the weekly timeframe. As seen in the circled area on the chart below, the big red candle was completely taken out by the next green candle, forming a railroad or what we all know as a false breakout. This only means one thing for price; it wasn't supposed to get there in the first place. The range breakout on the daily timeframe was a trap for sellers to stay short, thereby creating more liquidity for buyers and also allowing them to buy at lower prices.

Price is presently trading at 1.09554 at publishing time, inside the previous range. A strong break above the consolidation will confirm the buy on the daily timeframe, which will breach the resistance level that pushed the price lower. A break above the 1.1000 resistance level will see the price move to 1.10300 or just above it at 1.10500. This will give more buyers confidence and as the volume of the buyers increases, the momentum of buyers also increases.

A break above the 1.1000 price level will confirm the presence of the main uptrend from the weekly timeframe. This will be the start of an uptrend on the daily timeframe as sellers get fade out.

NOTE: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the view of WIKIFX. Every investment and trading move involves risk. You should conduct your research when making a decision and use proper money management.