Trade of The Day – EUR/CHF

Facts:

• The pair returned below the horizontal resistance area at 0.9220
• EURCHF is trading below the 100-period exponential moving average from D1 interval

Recommendation: Trade: Short EURCHF at market price Target: 0.8995 Stop: 0.9272

Opinion:

Looking at EURCHF on the D1 interval, one can see a potential downward trend resumption. Following a break above the 1:1 geometry, the pair quickly returned below the upper limit of the aforementioned 1:1 structure. According to the Overbalance methodology, the main trend remains downward. In addition the pair sits below the 100-period moving average from the D1 interval. We recommend going short USDCAD at market price with a target of 0.8995. We also recommend placing a stop loss order at 0.9272.

Source: xStation