A great opportunity for Shorting EURCHF

A great opportunity for Shorting EURCHF

EURO / SWISS FRANC FX_IDC:EURCHF


Following the recent depreciation in EURO             value, I think EURCHF             also technically is ready for a significant drop. Here are a few reasons that explain why I made this call.

1) This is weekly EURO             weighted averaged chart (to replicate, see the screenshot title). This chart shows the EURO             value versus the other 7 major currencies. As it can be seen RSI trend diverges the price trend. RSI also is making lower lows where the price trend makes the higher high. Weaker EURO             is what we need for our EURCHF             Short trade.

2) This is Euro             future chart ( to replicate search E61!             on TV). See the wedge breakout on the chart. It has a lot room to get to the lower band of the rising channel .

3) This is Euro             index. ( to replicate search for EUSTX50             ). Currencies and indices normally move against each other. For instance GBP and FTSE100, YEN and NIKKEI. Bellow if we have stronger Euro             index that means cheaper Euro             .

This is exactly what is happening.

4) Now let’s look at CHF. This is the weighted average CHF chart. After a significant fall in CHF value for the last a few weeks, it is sitting at a major support now. A bounce is expected now. I doubt it breaks lower as there is no major SNB news.

5) This is CHF futures chart. Again it is sitting at a major rising support now. A bounce is expected. Again great for our EURCHF             Short trade.