EURCHF Candlesticks and Ichimoku Analysis
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Doji star |
3 May 2009 |
Sideways |
| Daily |
N/A |
N/A |
Sideways |
The currency pair staged a strong rebound last week on intervention by SNB, however, price met heavy offers right below the Ichimoku cloud top and has retreated from 1.5382. The candlestick formed last week with a relatively long upper shadow signals further choppy movements within 1.5006 - 1.5448 trading band would continue and although pullback to 1.5150 cannot be ruled out, said support should continue to hold and bring another rise later. A break of 1.5376/83 (Ichimoku cloud top and last week's high) would signal rise from 1.4577 has resumed for retest of 1.5448, then towards 1.5550.
On the downside, only a daily close below support at 1.5006 would confirm a downside break of aforesaid range has taken place, then fall to 1.4909 (61.8% Fibonacci retracement of 1.4577 to 1.5448) but the currency pair should find support around 1.4800 and support at 1.4577 should continue to hold.
Looking at the daily chart, the single currency continued to stay above the flat ground Ichimoku cloud bottom and rallied last week on SNB intervention and although price has retreated from 1.5382 and pullback to the Tenkan-Sen and Kijun-Sen (now both at 1.5194) cannot be ruled out, renewed buying should emerge well above the Ichimoku cloud area (1.5100-1.5122) and bring another rise towards 1.5382. Looking ahead, only break of 1.5382 would signal the rise from 1.4577 has resumed for a retest of 1.5448 chart resistance later.
On the downside, if price continues to falter below said resistance level and drops below the Ichimoku cloud, then further choppy consolidation would take place but strong support at 1.5000/06 should remain intact. In the event price breaks below this key support level, this would confirm the rise from 1.4577 has ended at 1.5448, then further decline to 1.4900/10 and possibly towards 1.4850 would follow.
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