EUR/CHF 4H Chart: False breakout

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Neutral Sell
Stochastic (5; 3) Sell Sell Buy
Alligator (13; 8; 5) Buy Neutral Buy
SAR (0.02; 0.2) Buy Sell Buy
Aggregate

On the Dukascopy chart for the common European currency against the Swiss Franc one can also see a failed forecast. The reason for that is the fact that the expected break out from a triangle pattern did not cause the expected effect.

Instead what occurred was a false break out. The currency exchange rate suddenly passed the support line of the triangle pattern and began to move lower. However, it was stopped by the support of the weekly S1.

As soon as the decline was stopped, the currency exchange rate began a surge up to the upper trend line of the triangle pattern and has recently even passed it. The reason for that might be the fact that potential short sellers closed their positions, as the break out failed.

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.