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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
I don’t discuss the EURCHF often.
It tends to be choppier than other pairs, especially the majors.
The September 9 session confirmed the break.
But the retest of former channel resistance as new support didn’t occur until the 12th.
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We even got a nice bullish pin bar out of that retest.
EURCHF is a perfect example of why waiting for a retest is sometimes essential.
Retests like this don’t always materialize, but when they do, they can offer incredibly favorable opportunities.
Plus anyone who bought on the initial breakout was likely stopped out during the 100-pip plunge on September 12.
Now let’s talk about where EURCHF might go from here.
As you can see from the chart below, the 1.0970 level has served as resistance all week.
That’s no surprise given that 1.0970 acted as support for the pair in late July.
Buyers are going to need to close EURCHF above 1.0970 if they intend to push prices higher next week.
If they do manage a daily close above 1.0970, we will likely see EURCHF push toward the next key resistance at 1.1060.
Beyond that, we have 1.1150.
Notice how well-defined and evenly spaced those three levels are from one another.
There’s a good reason for that.
All three levels (1.0970, 1.1060, and 1.1150) line up almost perfectly with the Fibonacci retracements of the year-to-date range.
There’s no question that each of those areas will attract sellers on the way up.
Just remember that 1.0970 will continue to serve as resistance until buyers close the pair above it on a daily closing basis.
Do that, and 1.1060 and maybe even 1.1150 are within reach.