EURCHF Trend Reversal- Long Position

I believe that the EURCHF 0.04% is going to see an increase in pips in the next day. As you can see several of the bearish candles all break the lower bound of the bollinger band , creating a bearish trend . Additionally, the Stock Oscillator shows that during this bearish trend , this currency pair is being oversold. These two indicators show that there is going to be a trend reversal, and the conformation of this trend reversal is supported by the bullish candles shadow at 2018-02-27 22:00:00 being well over 20% more than the previous bullish candles shadow but closing at a higher price. We can expect to see a short period of consolidation in the next upcoming hours but after this the retracement action will begin. With this being such a strong move with 13 bearish candles, we could expect to see a rise in pips well over 0.50 fib level.

Commento:

The EUR base currency correlates directly with gold and if we were to look at the chart for gold we would see a strong bearish trend ( just like this one ). With the vast amount of volume traded in gold, it’s corrolation to this trade helps prove that there will in fact be a reversal in trend to a bullish. Gold is currently going through the second phase of reversal , “consolidation phase” , as the same with EURCHF pair right now. It is after this that we can expect to see the start of a bullish trend

Trade chiuso: obiettivo raggiunto:

Has pushed past the 0.5 fib level, I tend to take profit here. Looks as if it could break the 0.618 level as well though