Facts:
EURCHF bounced off the key resistance at 0.9205
Mid-term trend from mid-January remains downward
Recommendation:
Trade: Short position on EURCHF at market price
Target: 0.9148, 0.9125
Stop: 0.9218
Opinion: EURCHF reached a key technical resistance which is marked with an upper limit of 1:1 structure as well as 38.2% Fibonacci retracement of the recent downward move started at 21 of January. Looking at the H4 interval, the resistance is also marked by previous price reactions and. In addition the price sits below the 100-period moving average. According to the Overbalance methodology, as long as the price sits below the aforementioned area, one should expect price to continue the downward move. We recommend going short EURCHF at market price with two targets: 0.9148 and 0.9125. We also recommend placing a stop loss order at 0.9218. Source: xStation5
