EURCHF has seen a parabolic move upwards for the most part of last week. However, it is now facing resistance on the daily timeframe.
We can see that the pair has formed a hanging man pattern. It will be a big hurdle to break above the daily resistance. A break below the tail of the hanging man could send the pair looking for the key area of support again.
Last week on Thursday, German and french manufacturing data as well as German PPI figures missed their expectation. Overall European Preliminary manufacturing data also missed the expectation. This halted the rally that the Euro has been staging against the CHF.
We can look at a lower time frame to look for a good trading entry point.
We prefer selling if the uptrend line on the H1 chart is broken, the target being the daily support zone as shown on the above chart.
Disclaimer: Our analysis and forecasts given on this website are just our point of view about the market. It is not a trading signal or investment advice.