Even though price has bounced from that low. Points to consider: convergence on MACD and by now a clear crossover on stoch. In the daily below I've drawn several lines that I consider important. First to consider is the downtrend channel where price has been bouncing. Right now the pair is trading in a critical zone due is testing the upper line of the channel, so a breakout could mean a further advance in price and a possible test of previous highs. Because today's candle is not closed yet, we cannot say if there is a false break out or a real one. I've drawn a support line which is still valid and a break of this one could mean a retracement in price to test the previous low and even break it to found a historical new one. Time will tell...
Going deeper, in the four hour chart, the trend is up. Right now there is a short term trade opportunity. As usual, price is always right. It seems that an ascending triangle is forming and tomorrow or within three trading days will be broken. As obvious as might sound, we have two possible scenarios... a break to the upside would break the long term trend, which it's possible but really difficult to do. The triangle is ascendant so more than likely that "should" happen, but...
Price has formed not quite perfect but a double top, and stochastics is almost overbought. The eurchf is trading around a resistance zone which coincides with a previous not-so-representative high and we have also a .382 retracement from the last swing in the daily chart at 1.3481. A break to the downside could be more probable but we have to wait and see what Price wants to do. Again, and again, and again, price is the best indicator. Tomorrow there is the US NFP and this could cause a lot of volatility and noise, so... better stay in the fence...
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