FxWirePro: Can it be bearish crossover in EUR/CHF, major trend likely to edge higher but remains persisted range bounded trend

Ongoing price dips have gone below 1.1019 (i.e. 7SMA levels), consequently, 7SMA curve has been bent down to evidence bearish crossover. Should the prevailing price drops continue, then this signal most certain.

Ever since the rejection of the recent highs of 1.1061 levels, the short-term trend of this pair has been weaker (refer 4H charts).

On the contrary, despite the lingering bearish sentiments, the pair still manages to maintain its 1-year highs.

Despite the uptrend in last couple of couple of months (4 and a half months), the major trend of this pair has remained in the range that’s persisting from since February 2015.

Well, contemplating the bearish momentum for the day, the price drops may drag upto the next strong supports at 1.0980 levels. Historically, this levels have acted as stiff resistance levels, bulls are now testing the same level as strong supports.

The current prices are well below SMAs on 4H chart, bulls are well above EMAs. While the bears may get active at above-stated resistance levels of 1.1019 levels (i.e. 21SMA) to plummet prices again.

MACD on monthly terms remaining in bearish trajectory is not a strong signal of the bullish trend, while this lagging oscillator on intraday term has signaled price dips to prolong further.

RSI signals fading strength in rallies at 57 levels on the intraday term, whereas this leading oscillator has been adverse to what has been signaled on the intraday term.

It is also spotted out that the downward convergence in stochastic curves that indicates the selling momentum; again, the same has been adverse on monthly terms. This leading oscillator signals intensified buying sentiments.

Overall, the non-directional trend likely to persist in the major trend.

For the daily trading, tunnel spreads are best suitable, so snap the rallies to deploy higher strikes in the binary puts while shorting lower strikes simultaneously. Use upper strike at 1.1029, lower strike at 1.0980 levels which means that the speculative opportunity between 40-50 pips.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at -147 levels (which is highly bearish), while hourly CHF spot index was at shy above -56 (which is bearish) at 09:50 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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