EURCHF Endures Bearish Pressure
EURCHF has been enduring a bearish pressure since the 4th of March 2021 when the price hit a year high of 1.11500. Just before then, the market had experienced a major pump in price. Price jumped from 1.07830 to 1.11030 key level. There was then a pullback below the 1.10000 support before EURCHF rallied to a 1.11500 year high.
Immediate after, the market was put under bearish pressure. Price has since been downward sloping. This is observable in how EURCHF has been making low highs and lower lows. This trend continued till the market reached the 1.09300 support on the 11th of May 2021.
The 1.09300 support, in a bid to halt the market slump, is setting up EURCHF for a downward breakout. This is because the bearish pressure persists as seen in continuous lower highs. Eventually, 1.09300 is expected to bulge for a free price fall.
EURCHF Significant Zones
Resistance Zones: 1.11500, 1.11030, 1.10000
Support Zones: 1.09300, 1.08500, 1.07830
EURCHF Market Anticipation
The 1.09300 support has prevented further lower lows, but the bearish pressure keeps producing lower highs on the market. The market is therefore becoming gradually narrower going forward, preparing for a downward breakout.
The 9MA (Moving Average) has been undulating downwards but is gradually straightening out towards the tip. This shows the influence of the 1.09300 support on the market.
The ATR (Average True Range) indicator shows a gradual decline in market volatility since the bearish pressure was placed on EURCHF. In the past 4 days, there has been an even more decrease in volatility.
A descending triangle formation can be seen on the four-hour chart. The price movement is tapering as it moves forward. A breakout downward of the market is expected. The 9MA is currently pointing downwards following the price movement in the descending triangle. The ATR indicator also confirms reduced volatility as a result of the tapering of price movement.
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