Euro to franc (EUR/CHF) quotations last Thursday rebounded from resistance at 1,1340 after a poor reading of PMI. The falls were deepened following reports from the ECB.
However, already on the next day (Friday), the euro started to strengthen and at the beginning of this week the resistance / upper limit of consolidation was tested again at 1.1340. As can be seen in the daily graph below, the resistance was defeated at the close of yesterday’s session, and today new high have been established.
Breaking a high from consolidation opens the way for buyers to growth targets, the first of which is an important area of resistance between 1.1465 – 1.1490. This zone has also proved its strength many times over the past year.
In the event of a reversal, traders can observe the behaviour of trading on the new support with 1,1340, the EMA 10/20 averages channel and the current upward trend line since this year’s minima.
Join us in our new group for serious traders, get fresh analyses and educational stuff here: https://www.facebook.com/groups/328412937935363/