EURCHF – Ending Wedge Highlights a Bullish Bias

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Monthly: EURCHF 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. June and July posted indecisive Inside Bars with all trading in the lower half of the May candle range. Marabuzo resistance (mid-point from the open and close) is located at 1.1745.

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Weekly: looks to be forming a bearish Head and Shoulders pattern. A break of 1.1325 is needed to confirm.

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, quite common in corrective formations. The pair failed to reach the AB=CD formation target of 1.1762. This is also the 61.8% pullback level of the 1.2005-1.1368 move. Channel resistance is located at 1.1744.

Intraday: Looks be forming a bullish Ending Wedge formation. Bespoke resistance is located at the trend of lower highs at 1.1585. We expect strong resistance here. A break of this level and the wedge has a measured move of 1.1714.

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