News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here:
  • The inside bar pattern occurs regularly within financial markets. Incorporating the inside bar strategy can enhance a trader's market analysis. Find out how you can use it from @WVenketas here:
  • Point 3 is not talked about enough. The bureaucratic - dare I say, Leviathan - in most universities is resulting in tuition prices skyrocketing without adding clear value to the students.
  • Think #amzn will gap higher on Monday after Black Friday and the giant move to online shopping?
  • The exponential moving average (EMA) is a derivative of the simple moving average (SMA) indicator. Compared to the SMA, the EMA weighs recent price changes more heavily than later changes in price. Learn how to incorporate the EMA into your strategy here:
  • Traders in the Euro have a big decision to make this weekend: if EUR/USD hits 1.20, will it continue to advance, consolidate or fall back? Get your $EURUSD market update from @MartinSEssex here:
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here:
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here:
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:
Get Ready to Short EURCHF

Get Ready to Short EURCHF

2018-05-22 15:45:00
Martin Essex, MSTA, Analyst

EURCHF has fallen steeply since May 14, dropping in six of the past eight sessions, and could now be poised for an even more significant decline. However, it might be wise to wait a little longer before shorting the cross.

Looking first at the weekly chart, there are two important trendlines to take note of: the first connecting the 2015 lows (after the January crash) with the 2017 lows, and the second joining the 2017/18 lows. The former is still some way away but the price is currently sitting right on the latter.

EURCHF Price Chart, Weekly Timeframe (May 2015 – May 2018)

Latest EURCHF weekly price chart.

Chart by IG

This can be seen more clearly on the daily chart below. The price has already fallen through the 100-day, 50-day and 20-day moving averages so it is clearly in a downtrend but it would be useful to see a clear decline through the trendline support for confirmation – particularly as there is now an “oversold” warning from the 14-day relative strength index, or RSI.

EURCHF Price Chart, Daily Timeframe (November 17, 2017 – May 22, 2018)

Latest EURCHF daily price chart.

Chart by IG

Once that support is breached, the initial target would be the February 27 low at 1.1482, followed by the February 8 low at 1.1447. As for the upside, there is now very strong resistance just below the psychologically important 1.20 level, which capped the price in the second half of April and into May.

Before that, the price would have to move back above all three of the moving averages mentioned, which should slow down any attempt to rally. The downside is therefore favored over the upside, but waiting for the trendline breach would be better for all but the bravest.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.