Thursday brought us gains on two important European currencies: the CHF and the EUR. The first one has been gaining traction for some time already but for the second one that is something new and should be rather considered as a short-term correction.
The first instrument in this video is the USDCHF. We can clearly see the strength of the Swiss Franc. It started at the beginning of the month, when the price made a false breakout from the pennant. Proper sell signal was triggered on the 10th of May, when the USDCHF broke two major long-term supports. Yesterday, the price renewed the sell signal by breaking the lower line of the flag and mid-term dynamic support. Current target for this drop is the long-term upwards trend line connecting higher lows since the February 2018.
The EURUSD has made a significant reversal and created a strong bullish candle with a long tail and large green body. This can be a proper double bottom formation but the buy signal will be triggered only when the price beats this month’s highs.
The EURCAD is also trending positive because of the false breakout of the lower line of the symmetric triangle pattern. Currently buyers are on the run and they have high chances of reaching the upper line of this formation, which would mean a mid-term buy signal.