The EUR/CHF is trading in a selling channel, having dropped from 1.0520 level heading to test the triple bottom support zone of 1.0509. The demand for safe-haven appears to have increased due to the increased number of coronavirus cases around the globe. The strength of the single currency Euro is also keeping the pair supported. Most of the selling in the single currency euro rise in the wake of the dovish ECB monetary policy stance in the wake of the COVID19 crises.
The single currency euro exhausted following the European Central Bank, which announced more stimulus to accommodate the coronavirus impact. The ECB endorsed new stimulus measures to support the euro-region economy to deal with the increasing damage of the coronavirus disease.
The EUR/CHF has developed a descending triangle pattern on the 4-hour timeframe which is supporting the pair at 1.0509 along with resistance around 1.0528. On the 4 hour timeframe, a bearish breakout of 1.0509 can lead the pair towards 1.0490 and even lower. As we see, the 50 periods EMA gave a hard time to EUR/CHF, which faced strong resistance around 1.0525. Considering selling bias, we have entered the selling trade at 1.05159 with a stop loss at 1.05659 and take profit at 1.04659.
Entry Price: Sell at 1.05159
Take Profit 1.04659
Stop Loss 1.05659
Profit & Loss Per Standard Lot = -$516.5/ +$516.5
Profit & Loss Per Micro Lot = -$51.65/ +$51.65