by Alex Davies on November 5, 2018

EURCHF Analysis – iH&S pattern could lead to a buy signal

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.

EURCHF Analysis - iH&S pattern could lead to a buy signal

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.

By Alex Davies

Alex Davies is a long-time trader with a background in statistical analysis. Davies has worked as a financial analyst since 2014 and has been writing technical analyses for various publications since 2015. Davies writes on different financial instruments including stocks, cryptocurrencies and currency pairs.

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