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EUR/CHF Approaching Strong Support.

Last updated 2/13/2009 7:15 PM EST (GMT -5) 0 Comments - Add your comment

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Bradley W. Gareiss

Technical Analyst, GFT

The EUR/CHF is forming a bullish Gartley pattern that would create a high probability opportunity to go long.  There is also longer term convergence that we will examine on the 4hr Chart.  If this pattern completes, it will likely happen Sunday night.

We are looking to buy the EUR/CHF at point D (1.4891).  Point D is located at the convergence of the following points:

The entry appears to be slightly higher than where the pattern completes, but this was done to account for the spread.  It is rare to see so many ratios converging at the exact same place, but this pattern contains five separate levels of support at nearly identical levels.  If the pattern completes and shows good time symmetry, this is an above average trade.

To recap, we will look to buy the EUR/CHF at 1.4891 with our stop placed at 1.4869.  Our initial profit targets are 1.4914 (38.2% of CD) and 1.4935 (61.8% of CD).  As usual, it is very important to place a stop because if this trade breaks, it will likely break down hard.

4hr Chart - Our buy entry meets at the bullish trend line and longer term 78.6% Fibonacci retracement level.	30min Chart - Bullish Gartley; buy @ 1.4891.

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