EURCHF Analysis – Bears Hijack the Market to Begin a Price Tussle
EURCHF bears unexpectedly hijack the market to send bulls scrambling to regain control. The bulls’ anchor position at 1.03270 has finally given way after a period of sustained downward pressure. The price rose to the resistance at 1.06070 and then began a swift descent towards the support. Repeated heavy blows to the support caused a weakness, causing the price to plummet.
EURCHF Significant Levels
Resistance Levels: 1.06070, 1.05100, 1.04520
Support Levels: 0.99760, 1.01010, 1.03270
Buyers eventually found a way to halt the long-drawn price decline by setting a solid demand barricade at 1.03270. However, a lingering bearish influence on the market means the price reversal won’t be smooth. This led the market to the formation of an expanding triangle pattern. In this formation, the market lows had daily candle wicks that pierced the demand level at 1.03270.
The continued price crash to the demand level allowed the bears to hijack the market and plunge it more than 3% to 0.99760. The buyers reacted immediately by pushing the market back up, but only as far as 1.02470. The market has now been swayed bearish-ward, as shown by the MACD (Moving Average Convergence Divergence) indicator, whose lines are below zero level, accompanied by bearish bars.
Market Expectations
Buyers have responded to the plunge in price by using a tweezer bottom candlestick pattern on the 4-hour chart. This pushed the price to 1.02470, where it is now fluctuating. As shown by the MACD indicator, the market remains bullish, and buyers would try to restore the price above the strong support level. The Moving Average period 24 is below the 4-hour chart for a bullish drive. EURCHF is predicted to rise towards 1.06070.
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