My picks: Watching for EUR/CHF Break
Expertise: Fundamentals Combined With Technicals
Average Time Frame of Trades: 1 Day - 1 Week
EUR/CHF has spent a lengthy amount of time consolidating with a tight channel, though the pair did bounc last week from support at the 50% fib of 1.4586-1.5448 at 1.5017. In this situation, I think it may be best to await a breakout, which tends to follow these sorts of consolidations. Since we have event risk for the euro looming on Thursday from the European Central Bank's rate decision, such a break may not occur until later in the week.
Bullish parameters: Watch for a break above falling trendline resistance at approximately 1.5175/80. Upside potential may be limited due to resistance at the 200 SMA at 1.5336.
Bearish paramters: Watch for a break below the April lows and psychological support at 1.5000 to target the 78.6% fib of 1.4586-1.5448 at 1.4772.
Maintain appropriate risk/reward levels.
