The EURCHF has corrected from its resistance zone down to its support zone as visible in this H4 chart. While the Euro is under pressure due to negative economic reports, the Swiss Franc is still under manipulation by the Swiss National Bank and therefore this pair is troubled by twin bearish factors. We believe this pair will launch a finally rally before we can see new lows.
MACD shows a stark improvement and adds to the theory of one final rally before further downside. RSI is trading in oversold territory and a breakout from this level should fuel the rally.
We recommend a long position at 1.2285. This will be in addition to a long position we took on January 29th at 1.2432. We also recommend traders place a stop sell order at 1.2250, using half the volume of both open positions.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 1.2200. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 1.2380.
