By Yan Petters
After a couple of weeks that the EUR/CHF pair has consolidated around the 1.3000 level, and saw very little volatility, the bearish trend has resumed, and the pair is currently trading near the 1.2730 level. In addition, several technical indications suggest that the pair’s bearish move is likely to proceed, with potential to reach the 1.2600 level by the end to today’s trading session.
• The chart below is the EUR/CHF 4-hour chart by ForexYard.
• It can be seen that between November 30 and December 14 the pair saw very little volatility, and was trading near the 1.3000 level.
• However, the pair is dropping rather consistently ever since, and is now trading near the 1.2730 level.
• In addition, a bearish cross of the Slow Stochastic is suggesting that the bearish move has more room to go.
• The RSI is pointing down as well, and is currently floating near the 40-line. If the RSI will fall below the 30-line, meaning entering the over-sold zone, it will probably validate today’s bearish session.
• Another possible validation of today’s bearish trend could be the forthcoming bearish cross by the MACD. On the last time that MACD has completed a bearish cross, the pair almost instantly dropped about 200 pips. Such development can take place again.
• The pair’s nest support levels are located at: 1.2720, 1.2650, and 1.2600.
• The pair’s next resistant levels are found at 1.2795, 1.2860 and 1.2920.
Forex Market Analysis provided by ForexYard.
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