EUR/CHF Breakout Above Weekly Resistance 🦐
Technical analysis of the EUR/CHF pair on the 4-hour time frame reveals an upward trend within an ascending channel.
After reaching a recent low, the price action started to move higher, forming higher highs and higher lows.
The ascending channel pattern formed as the price action created two parallel trend lines, one acting as resistance and the other as support.
The price initially experiences rejection at the weekly resistance, this is a sign that there is strong selling pressure at that point. However, if the price can successfully break above the resistance, it can indicate that the buying pressure is stronger and that the upward trend may continue.
In such a scenario, traders can place a long order at the break of the resistance, with a stop loss placed below the level according to the Plancton's strategy rules.
It is important to keep in mind that the market can be unpredictable and traders should always have a well-defined risk management strategy in place as we teach in the Academy, as well as monitor the price action and any relevant news and economic releases that may impact the pair.
After reaching a recent low, the price action started to move higher, forming higher highs and higher lows.
The ascending channel pattern formed as the price action created two parallel trend lines, one acting as resistance and the other as support.
The price initially experiences rejection at the weekly resistance, this is a sign that there is strong selling pressure at that point. However, if the price can successfully break above the resistance, it can indicate that the buying pressure is stronger and that the upward trend may continue.
In such a scenario, traders can place a long order at the break of the resistance, with a stop loss placed below the level according to the Plancton's strategy rules.
It is important to keep in mind that the market can be unpredictable and traders should always have a well-defined risk management strategy in place as we teach in the Academy, as well as monitor the price action and any relevant news and economic releases that may impact the pair.