Short term
Trade view / 16 August 2016 at 7:34 GMT

Corrective pattern completes in EURCHF

Analyst / PIA First
United Kingdom
Instrument: EURCHF
Price target:
Market price:

USD Index: The index is pushing to the downside in what looks to be a bearish Head and Shoulders pattern. The neckline is seen at 94.77 (current price 95.24). There is caution in this call with both the six-hour and two-hour charts highlighting Demark exhaustion counts, but we expect rallies to be sold into. 

I am short EURCHF and long AUDUSD this morning. Here is an outline of the EURCHF trade. 

Weekly: Trading has been mixed for the last nine weeks with spikes seen in both directions. For the last seven weeks we have posted Inside Soldiers, a clear sign of indecision. However, we are yet to hold levels above the Marabuzo level of 1.0957, set on the week of June 6. Trendline support is located at 1.0633.

We are in an expanding wedge formation so would expect this support to hold with the pattern having a bullish bias. 

Weekly (inside bars):
Source: Saxo Bank

Six hour: Choppy five wave sequence to the downside (Elliott wave). We have since seen (from the 1.0624 low) a choppy corrective pattern with inside waves being made up of three waves. Levels close to the 61.8% pullback of 1.0937 have been rejected with the six-hour chart highlighting a bearish Outside Candle. First support seen at 1.0827 (trend of higher lows) 

Six-hour chart (completes a complex correction):

Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank


Entry: short 1.0875.

Stop: 1.0905.

Target: 1.0830 then 1.0640.

Time horizon: first target within two days.

— Edited by Michael McKenna

For more on forex click here.

Non-independent investment research disclaimer applies. Read more
Anton Bushin Anton Bushin
Hi Ian, what is your target for AUDUSD?
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
0.7735 is the first resistance. If we can clearly break there, then 0.7780


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail