Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The EUR/CHF is showing very strong bearish momentum, as the RSI remained below 60, and dug deeper below 30 than before.
- Market action was expanding, then failed to rally and started to plunge.
- The 1.29 area is providing temporary support, as the market pauses to resolve its oversold conditions. The rally could go towards 1.3030. If it does, it would likely find topping between 1.30 and 1.3030. Then, if the market tops off and starts declining, it should be in a bearish continuation.
- The first target would be the 1.28-1.2780 area, 50% retracement and an important support level.
-We see a bit of a rejection at 1.29, as the market also tested the 200SMA. Therefore, if the market does clear 1.29, its a good confirmation for the bearish continuation towards the 1.28/1.2780 area. In the daily chart, we see why it is important to clear the current low, because the current low was established after an equality wave (the previous downswing was equal in length, and could both have been corrective).
- Not breaking below the current low leaves open the scenario of a bullish continuation. The bullish scenario, which could be considered if the market breaks above 1.31, could be a rally to test the 61.8% retracement level seen in the daily chart, near 1.33.
- A break below 1.27, has the 1.24 low in sight.
What scale is this bearish continuation if it happens? Will it bring the market back to the 1.24 low? We would love to hear what you think.