By: Doug Rosen
This pair looks extremely bullish. Starting with the EUR/CHF daily chart price is maintaining above the 5 and 13 ema's. On the 4 hour, 1 hour and 15 minute charts price is above the ema's and on the hourly and 15 minute charts the upper Bollinger band is wide open and pointing up. Now, looking at the GBP/CHF weekly chart price has been riding above the 5 ema but last week was a very red week for this pair and for this week we already have a long upper wick and the stochastics is in the overbought zone. On the daily chart the GBP/CHF is below the 5 and 13 ema's and underneath the ema's on the 4 hour, 1 hour and 15 minute charts, the total opposite of EUR/CHF so with this being said, I think it would be safe to say the EUR/GBP will still remain bullish. Looking at the weekly chart for the EUR/GBP it is very obvious we have broken out of a price trap to the upside, retested and bounced off the crossing ema's and the stochastic is rising out of the oversold zone and crossing up. On the daily chart the 5 ema has crossed above the 55 and 144 and it looks like price wants to ride the 5 up.
On the 4 hour chart price has gapped quite a bit from the 5 ema which tends to happen when there is a lot of energy behind a move. Price really needs to slow down for just a bit and give the ema's a chance to catch up with price or meet it somewhere in between.
On the hourly chart price bounced off the 13 ema and has been riding the 5 up. The EUR appears to be much stronger than the GBP and I would remain bullish.
