EUR/CHF recovers after declining following a breakout from a Triangle pattern that started forming in August and completed in November (see chart). The pair reached lows of 0.9204 on November 22 but promptly recovered to form a bullish reversal candlestick pattern called a bullish Hammer (green rectangle on chart below). EUR/CHF Daily Chart(Click on image to enlarge)Despite being a classic example of a Hammer, the candle on EUR/CHF failed to gain bullish confirmation as it was not succeeded by a green up candle on the following day. Since then the market has been going sideways. There is still a risk EUR/CHF could resume falling again. It has not yet reached the conservative downside target for the Triangle at around 0.9146 (red dashed line), the 61.8% Fibonacci extrapolation of the height of the Triangle lower, and it is possible it may still fall down to that target in time.A break below the Hammer’s lows at 0.9204 would increase the likelihood of the target being achieved. More By This Author:AUD/USD Bounces After Australian Trimmed Mean CPI Data, Fed Rate-Cut Bets USD/CAD Spikes Above Multi-Year Range After Trump’s 25% Tariff Threat EUR/JPY Price Prediction: Down-trend In Play, Lower Lows Expected
EUR/CHF Price Prediction: Risks Further Downside To Target Despite Hammer Candle
