From our previous analysis, our buy stops had been placed above 1.16 but because there were no bull surges above this price tag, they remained active.
Technically and from my own analysis, I really think there is room for an upside and that is why, given the technical set up at prevailing prices, the Euro needs a simple nudge and a rally might be on the offing.
Notice that prices are actually trending at the oversold territory of the stochastics and are reversing from the 78.6% Fibonacci retracement line following that double bar pattern on February 8 and 9.
The high lows of the main bearish engulfing pattern on February 8 will act as our temporary support resistance and as such, I will place my buy stops at 1.164. That is just above the middle BB and way from the chaos and whip saws prices are currently trending at.
A look at the our entry chart and we note that if prices clear the main resistance trend line and 1.16, then chances of 1.164 being cleared is high. Reason? It will be a potential bull break out.
This is my EURCHF Trade Plan:
Buy Stop: 1.164
Stop Loss: 1.159
Take Profit: 1.18-January highs
Have a good trading day