EUR/CHF Up 13 Pips, in a Downtrend Over Past 90 Days; is Inching Close to 20 Day Average

EUR/CHF Price Recap

EUR/CHF enters today at 1.0623 in US dollars, up 13 pips (0.12%) from the day prior. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 27.36% from the day prior, and up 57.79% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/CHF ranked 17th yesterday in terms of percentage price change. Here is a price chart of EUR/CHF.

EUR/CHF Technical Analysis

Coming into today EUR/CHF is now close to its 20, 50 and 100 day averages, located at 1.066, 1.0756 and 1.0865 respectively, and thus may be at a key juncture along those timeframes. Volatility for EUR/CHF has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. 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 14 days EUR/CHF’s price has gone down 10 them.

A final note on correlations: over the past week, the currency pair bearing the strongest correlation to EUR/CHF has been CHF/JPY — a common occurrence, given the presence of CHF in both currency pairs. As for pairs with the least correlation, GBP/NZD is the pair that holds that distinction for the past week, while ZAR/JPY does on a two week basis.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURCHF, with 20 buy signals on our radar and 14 sell signals. This imputes a buy/sell ratio of 1.43, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

It was an almost perfect trade, predicting the pump and dump upfront, getting a nice entry and a bounce….Even now with the current daily candle, looks like another attempt from the bulls….For now, if the daily candle closes above the green zone, would make it a big reversal sign.