EUR/CHF has been under pressure this year, testing the lower limits of its broad sideways range. While this initially gave way on Monday, the current sharp recovery hightlights not only a rejection of the lower limits of the channel, but also a bullish Piercing Line Candlestick reversal pattern, if Friday's close is above last week's open/close mid-point at 1.2161.
Confirmation of the reversal pattern would be outright bullish and open the way to a test of the 1.2398 January failure high in the coming weeks, and even 1.2652, the May 2013 high, further out.
Traders will recommend a long position for a 2m to 3m horizon on a close Friday above 1.2161, targeting 1.2390, with a stop at 1.2020, below the November 2012 rally point. A short-term reversal may also be developing on the daily chart, adding to EUR/CHF bullishness.
Confirmation of the reversal pattern would be outright bullish and open the way to a test of the 1.2398 January failure high in the coming weeks, and even 1.2652, the May 2013 high, further out.
Traders will recommend a long position for a 2m to 3m horizon on a close Friday above 1.2161, targeting 1.2390, with a stop at 1.2020, below the November 2012 rally point. A short-term reversal may also be developing on the daily chart, adding to EUR/CHF bullishness.
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