About a week ago, EURCHF looked like it would have a bearish breakout. The price had broken a support line and triggered a sell signal. The situation for the currency pair didn’t look optimistic for the buyers. The technical analysis predicted further slide in price. Nevertheless, the decline was short-lived and lasted only a couple of days.
The decline wasn’t deep either and soon reversed to start tracing out the inverse head and shoulders pattern. As the price is currently at the right shoulder of the pattern, we are taking a bullish outlook. For the buy signal to be triggered, the price still has to break the neckline which is shown on the graph with a blue line. The price also has to break the orange resistance line. This would trigger a strong buy signal.