The EURCHF has corrected from its recent highs down into its rising support level as visible in this H1 chart. The support level is reinforced by the pairs 200 DMA and we believe this pair will bounce back into its current resistance zone which is made up by its 50 DMA and its most recent resistance level.
MACD has collapsed during the correction which hints at potential future weakness for the EURCHF after a minor rally. RSI has reached oversold territory and a breakout from its current level should accelerate the rally back into resistance.
We recommend a long position at 1.2430 with a potential second entry at 1.2250. Should this pair breach the 1.2380 to the downside we advise traders to hedge their initial long position with a short hedge before adding new long positions to this trade.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 1.2380. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 1.2500.