EURCHF Key Zones
Demand Zones: 1.1000, 1.1100, 1.1150
Supply Zones: 1.0780, 1.0870, 1.0920
EURCHF is set to continue its downward zigzag movement. This is in a bid to gradually correct the upsurge that happened between the 17th of February and the 25th of February. During the upsurge, the price sprung from the 0.7800 support to reach 1.1100 resistance, then retraced a little before shooting to the next resistance at 1.1150. There had been three months of market consolidation from 9th November 2020 to 9th February 2021 before the upsurge.
What to Expect From EURCHF
EURCHF is therefore gradually correcting the upsurge by cranking along a downward channel. The price exhibits successive lower crests and lower troughs. The day has opened with a bearish candle to continue the descent from the fourth successive lower-high. EURCHF will however have to break through 1.0920 support to form a new lower-low.
The 7 MA (Moving Average) has touched the tip of the 14MA (Moving Average) to go downwards. The Stochastic oscillator is currently at mid-level, but the blue line is facing downward and has also touched the tip of the red line, signifying a change to a selling position.
The 4-hour chart shows a clear path for market movement. The 1.0920 support is looming large and is likely going to repel price at the first trial. The market is expected to eventually break through it.
The MA (Moving Average) indicators have crossed each other downwards for a bearish indication of market movement. The Stochastic oscillator is almost entering the oversold region showing prominent and continuous current selling actions.
The market is expected to retest the 1.0920 support if repelled initially to continue its bearish zigzag correction pattern.
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