Last week, I wrote about the downward trend that takes place on the EURCHF four-hour chart. After a wave of falls, the new week is a wave of increases on this pair. The current candle breaks through the upward trend line. This is a very important level, the behaviour of the price in the coming hours will affect the future of this pair.
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The EURCHF price has fallen moderately since mid-July. In the meantime, an upward correction occurred several times. However, it has never been as strong as it is today, with increases starting from Monday, amounting to about 60 pips. On the other hand, however, it must be admitted that the downward trends preceding the correction were also more dynamic than before.
If the price returns under the upward trend line, we will have a sell signal. I recommend opening a short position with the goal at 1.1450, where the nearest important support is located. If the trend line is permanently broken, I would expect increases to around 1.1625, in the first half of July, the price reacted on it severally.