EURUSD resisted, but of course the strength of the American currency didn’t help. EURUSD still suffered, but our hero today is the EURCHF, which is very strong and actually gave us a proper, long-term buy signal.
EUR/CHF Technical Analysis
Since March 2021, EURCHF is on a legitimate downtrend and since the end of February, the pair was in a symmetric triangle pattern (red). By the beginning of May, after a series of bullish candles, the price managed to escape from the triangle to the upside. That only encouraged buyers and increased the momentum allowing the price to rise further and break the mid-term down trendline (blue).
EUR/CHF Trading Strategy
Breaking those two resistances is definitely a great sign and an invitation to go long. The buy signal is here and stays on the table as long as the price stays above the horizontal support on the 1.035 (orange).
An alternative scenario includes the price coming back below the orange support, which would effectively give us a sell signal. But the chance of that happening are now rather limited.
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