This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
EURCHF continues to range around 50% of the downside 1.1059/1.0504 Fibonacci retracement leg. This sees the pair extend its horizontal pattern from mid-July.
Should we see momentum exhaust on the indicator, then the possibility of a move to the 61.8% area is expected. Currently, the indicator remains slightly neutral as we await further clues.
The large engulfment holding the prices in the Ichimoku cloud suggests that support could be maintained at the said 50% area.
A look at the 4-hour chart indicates that the bias remains to the upside. The recent bullish divergence signaled on the momentum indicator is expected to keep prices elevated.
Prices are now trading between the convergence and baselines, which is on par with the 50%/61.8% of the long and short term Fibonacci legs.
If bulls can spearhead a push to 108, then this would make way for the recent highs witnessed last month.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.