FxWirePro: Bears Resume Again As EUR/CHF Approaches 1.1015 and Range bounded Trend Back in Action
Both on daily and weekly plotting, after two weeks of upswings bulls have now taken a halt as price touches at 1.1015 levels.
Bearish swings are getting active to evidence the weakness at this at this stage, that is where the leading oscillators signal selling pressures.
RSI on weekly forms lower lows and is currently trending below 56 levels, while %D crossover above overbought trajectory is also a substantiating the weakness in this pair.
As a result we could now see the slumps from last two days and dropped back in the narrow range trend that lasted from 9 months or so. Even if abruptly changes the direction and keeps spiking, the sustenance of the brief upswings seems unlikely above range resistance even though break out above resistance at 1.1011 (the resistance of sideway trend channel). MACD on monthly plotting hints the upcoming trend is likely to prolong in the same range. Long term FX investors may get good hedging arrangements capitalizing on this signal.
Intraday speculators can eye on boundary binaries keeping 1.0992 upper strike and 1.0954 as lower strike. Nevertheless, short term bears can eye on shorts in near month futures for targets of 60-80 pips with stiff stop loss of 1.1015 levels.
The material has been provided by InstaForex Company - www.instaforex.com