In a day where most currency pairs are trading flat ahead of the New Year’s holiday, traders have a unique opportunity to jump on an impending trend with the EUR/CHF pair. While the last day has seen the pair drop some 165 pips, technical indicators are now showing clear signs of an imminent upward correction.
We will be looking at the 4-hour EUR/CHF chart, provided by ForexYard. The technical indicators being examined are the Relative Strength Index (RSI), Stochastic Slow and Williams Percent Range.
1. The RSI is currently right on the border of being in oversold territory. This typically means that bullish pressure exists and that an upward correction may occur in the near future.
2. As we can see, the Stochastic Slow has formed a bullish cross, meaning that a correction is likely to take place.
3. Finally, the Williams Percent Range is currently just below the -80 level. This is typically viewed as the cutoff for being in oversold territory. Traders can take this as a sign that the pair should see bullish momentum.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
