EUR/CHF Heads Down For the 5th Day In A Row; in a Downtrend Over Past 90 Days

EUR/CHF Price Recap

EUR/CHF is down 18 pips (0.17%) since yesterday (with its current price near 1.06339), marking the 5th day in a row a decline has happened. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 2.33% from the day before — and down 6.94% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/CHF ranked 26th yesterday in terms of percentage price change. The price chart of EUR/CHF below illustrates.

EUR/CHF Technical Analysis

The first thing we should note is that EUR/CHF is now close to its 20, 50 and 100 day moving averages, which may act as price barrier for the asset. Something else of critical noteworthiness is that EUR/CHF may have broken its trend on the 14 day basis, as the trend’s momentum appears to be slowing down. Volatility for EUR/CHF has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days EUR/CHF’s price has gone down 8 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURCHF, with 22 buy signals on our radar and 10 sell signals. This imputes a buy/sell ratio of 2.2, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Connecting the lower highs and lower lows of price action with parallel trendlines depicts and confirms our Descending channel illustrated on the chart….Risk/Reward: 1/3Potential Duration: 15 to 20 daysWatch this space or Telegram channel for updates on lower time frames as price action is been monitored….The content of this speculation (including all data) is organized and published by Nirvana Trades & Investments for the sole purpose of education and assistance in making independent investment decisions.