EUR/CHF – Throwback after Double Bottom off the 200-day SMA

by Admin

Awards 2013

EUR/CHF Daily chart 4/10/2013 7:35AM EDT


Off the 200-day SMA: The EUR/CHF has been consolidating just above the 200-day SMA. the 4/9 session candle shows a breakout from this consolidating. This could be a early sign that bears are kept in check, and that a bullish outlook could develop. There is a slightly bullish bias because price remains above a slowly rising 200-day SMA. The RSI has also broken above 70, but has failed to tag 30. Also, we can say that although EUR/CHF retraced deeply (78.6%) from the 1.2567 2013-high, it still mostly respected a consolidation period it broke above at the end of 2012.

Double bottom: The 4H chart shows price breaking above a support/pivot area around 1.2180 to complete a double bottom. However, during the 4/10 session, we are seeing a throwback to test this price bottom. A break below an intra-day pivot of 1.2177 would be an early sign that the market is still trading sideways to bearish. A break below 1.2150 would probably invalidate the double bottom.

Will the market respect the bottom? If it does, the next challenge to the upside should be the falling trendline and a resistance pivot around 1.2250.

EUR/CHF 4H chart 4/10/2013 7:43AM EDT