An engulfing pattern has formed on the EUR/CHF daily chart, supporting earlier notions of a bullish retracement.

The technical picture shows the MACD oscillator below zero and printing higher lows, indicating an dwindling downward momentum and may lead to price-indicator divergences.

Equally significant in its bullish implications is the daily close above the weekly pivot point.

A swing low set-up in the EUR/CHF chart

(Market News Provided by FXstreet)

By FXOpen