CHF and EUR aim to end May on the Front FootThursday brought us gains on two important European currencies: CHF and EUR. The first one was gaining traction from some time already but for the second one that is something new and should be rather considered as a short-term correction.
First instrument in this video will be the USDCHF, where You can clearly see the strength of the Swiss Frank. It all started at the beginning of the month, when the price made a false breakout from the pennant. Proper sell signal was triggered on the 10th of May, when the USDCHF broke two major long-term supports. Yesterday, the price renewed the sell signal by breaking the lower line of the flag and mid-term dynamic support. Current target for this drop is the long-term up trendline connecting higher lows since the February 2018.
Now, EURUSD, which made a significant reversal and created a strong bullish candle with a long tail and large green body. This can be a proper double bottom formation but the buy signal will be triggered only when the price will beat this month’s highs.
EURCAD is also having a good time. Here, it all started with a false breakout of the lower line of the symmetric triangle pattern. Currently, buyers are on the run and they have high chances of reaching the upper line of this formation, which would mean a mid-term buy signal.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis