EUR/CHF changed little today and continues to be undecided on the short term. Price dropped but continues to stay in the green area. It moves somehow sideways on the short term and seems undecided. The perspective remains bullish because is located above very strong support levels.
I draw a Rising Wedge pattern on the Daily chart, but this is far from being confirmed. A corrective phase will start only if the rate will breakdown from the chart pattern. Technically, it shows some exhaustion signs on the Daily chart, but as I’ve just said, is premature to say that we’ll have another selling opportunity.
The Euro could lose ground also versus the Swiss Franc, the European currency depreciated versus the greenback and versus the Yen. Euro seems too overbought to continue to increase on the short term. The CHF is still bloodless as the Switzerland CPI dropped by 0.1% in the previous month. On the other hand, the Euro dropped in the last hours, even if the German Factory Orders rose by 0.5% in October versus a 0.2% drop in the last report, the Euro-zone Retail PMI was reported at 52.4 points, higher versus the 51.1 in the former reporting period.
The rate has come down to retest the sixth warning line (wl6) of a formed descending pitchfork and could slip towards the upper median line (UML) of the minor ascending pitchfork. It maintains a bullish perspective as long as is trading above the UML, so a retest could still give us a chance to go long on this pair. However, is a little risky to go long at this moment because the rate is located very high, so maybe will be better to wait for a correction phase before you’ll take a long position. A selling opportunity will appear after a valid breakdown below the upper median line (UML) and below the wl6. It could drop after the failure to reach and retest the first warning line WL1.