EURCHF with fresh, long-term sell signal

By Tomasz Wisniewski|

Published: February 07 2023, 18:29 GMT+0

EURCHF with fresh, long-term sell signal


In this particular moment, a sweet sell signal is triggered on the EURCHF. The price here is currently on new monthly lows for February, aiming at the ones from January. EURCHF has been in a long-term downtrend since March 2021 but since the end of September 2022, the price was in a bullish mid-term correction which officially ends today!

The correction that we are talking about here is a wedge pattern (blue) and was protecting the EURCHF from larger declines in the past few months. EURCHF has been recently moving very technically, as before this wedge, the price created a flag (red) ending with a very nice bearish signal.

Today, the price is breaking the lower line of the wedge, which officially ends this pattern and starts a new bearish wave. The potential target is 450 pips lower and is settled on the lows from the end of September of around 0.943. The chances that we get there in the next few months are really high. The bearish signal will be canceled when the price comes back inside of the wedge but chances of that happening are currently very low.