In an article published in mid-September, named, “FxWirePro: Buy euro against franc targeting 1.18”, available at http://www.econotimes.com/FxWirePro-Buy-euro-against-franc-targeting-118-906521 we recommended buying euro against franc at the then current price of 1.155 with a target at 1.18.
Since then the pair has moved higher, making a top around 1.17 area. As the European Central Bank (ECB) turned out to be more dovish than the market was anticipating, the euro has declined against the franc. It is currently trading at 1.157, still above our entry price. However, our latest calculation suggests that the franc is likely to strengthen and the pair is likely to drop towards 1.14 area and beyond before it starts rising again.
While we at FxWirePro, are maintaining our bullish outlook in the medium term, we think the pair will remain under pressure in the short term. We would like to urge our readers to close the position to buy lower or short it with a target around 1.138-1.13 area and stop loss around 1.171.
One can note declining RSI in the chart and the bearish inverted hammer candle.
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