Forex Trading Library

EURCHF – Selling into the Right Shoulder 2018-06-12

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Monthly: EURCHF has staged a strong recovery since posting a low in January 2015. The rally has stalled, and a reversal posted from levels close to the 78.6% Fibonacci pullback of 1.2010. Swing low (previous support) is located at 1.1447. Marabuzo resistance (mid-point from the open and close) is located at 1.1745

Daily: We look for a bearish 5 wave Elliott wave count to be completed at 1.3668. Immediate price action to the upside has been mixed and volatile, common in corrective formations. Trend line resistance, and a possible right shoulder in a bearish Head and Shoulders formation, is located at 1.1727. Bespoke resistance is located at 1.1697. This is close to the 50% pullback level of 1.1685 (from 1.2001-1.1371). With a stop placed above the monthly Marabuzo and the 61.8% pullback level (at 1.1760) this offers reasonable risk/reward.

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