has corrected from its resistance zone
down to its support zone
as visible in this H4 chart. While the Euro
is under pressure due to negative economic reports, the Swiss Franc
is still under manipulation by the Swiss National Bank
and therefore this pair is troubled by twin bearish
factors. We believe this pair will launch a finally rally before we can see new lows.MACD
shows a stark improvement and adds to the theory of one final rally before further downside. RSI
is trading in oversold
territory and a breakout
from this level should fuel the rally.
We recommend a long position at 1.2285. This will be in addition to a long position we took on January 29th at 1.2432. We also recommend traders place a stop sell order at 1.2250, using half the volume of both open positions.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 1.2200. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 1.2380.