Technical analysis of EUR/CHF dated 05.02.2013
EUR/CHF during its strong ascend ( from 10.01.2013 to 18.01.2013) by reaching to the previous resistance level in 1.24672 range, after testing it to break and passing of it by buyers twice ,the price could not pass this resistance level and faced a downfall. The price could record the top price of 1.25673 which is one of the most important resistance levels in front of price. By fixing of this top price with the next descending candles, the price reforms and descends. Also it could record the bottom price of 1.22565. Right now the price has been stopped by reaching to the supportive edge of descending channel and in 4H time frame has been made two candles with small body which shows indecision market to ascend or descend.
Between the top price of 1.25673 and bottom price of 1.22565, there is AB=CD harmonic pattern with the ratios of 76.4 and 127.2 that with completing the D point of this pattern there is a warning for ascending from the supportive edge of descending channel. RSI indicator is in saturation sell area and warns the formation of a bottom price in the next stage of ascends. Generally according to the formed signs until the supportive edge is preserved, the price has the potential for ascending and continuing its previous trend.