EURCHF Bears Drive Forcefully Towards Seven-Year Low

EURCHF Analysis – Bears Drive Forcefully Towards a Yearly Price Level at 1.04010

EURCHF bears drive forcefully toward a seven-year low at 1.04010. This forceful drive commenced at the 1.09330 resistance level when the efforts of buyers were cut short and reversed. The downward movement of the market has been through a parallel channel. The forceful downward drive has dashed through the already existing downtrend line, to show the eagerness of the bears.

EURCHF Important Levels

Resistance Levels: 1.06070, 1.09330
Support Levels: 1.04010, 1.05300
The market has maintained a bearish outlook since there was a surge in the market above 1.10050 in the first half of the year. Subsequently, the price slid down a trendline, which brought it to 1.07950. However, at this level, bears pushed harder to drop below the trend line. This immediately stimulated the struggling bulls to push harder against the market and they were able to disrupt the liquidity flow to drive the market to 1.09330.

The market’s rise to 1.09330, however, sparked retaliation from the bears, who drove the market down through the parallel channel. The market has now dashed again through the down trendline to reach 1.05300. A seven-year market low lies just below this price level. The ATR (Average True Range) indicator shows that the fall in the market is with rising volatility, hence bears remain stronger and intent on plunging the market.

Market Predictions

In the short time frame, the 4-hour candles have first bounced off the lower border of the channel. But a rejection at the middle line of the channel dropped the candles again. There is a second bounce up from the 1.05300 support line and the 4-hour candles are now gravitating again towards the channel’s middle line. A rejection at this level will likely drive the market to break past 1.05300 on its way to a seven-year low. A resisting MA period 30 above the candles is in favor of the bears.

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