EURCHF Breaks Free of the 1.08700 Transition Zone

EURCHF Analysis – Price Breaks Free From the Bearish Reaction at the 1.08700 Resistance

EURCHF breaks free of the 1.08700 key level after holding on for 6 trading days. The bullish market was put under duress at the 1.08700 resistance, which threatened to curtail its impressive rally. Price had initially been rejected at 1.08330, after which it slumped down below 1.07400. It took some days of struggle for bulls to overcome and break free of the mini-consolidation. Afterward, the price retested 1.07400 and shot upwards.

EURCHF Significant Levels

Resistance Levels: 1.08790, 1.09190, 1.09860
Support Levels: 1.08330, 1.07400, 1.06700

The space between the 1.08700 key levels and the 1.07400 key level has previously been a zone where the market ranged for many days till it broke free of it on the 22nd of February 2021. Price rose briefly to just below the 1.11500 level before falling steadily. The market slid down till it reached the 1.08700-1.07400 zone again, where it began encountering some restrictions.

EURCHF was eventually overturned around the 1.07400 support level, where it finally made its way back to 1.08700. However, price had restrictions in breaking free of the key level. Support from the 1.08330, however, helps it break free of the price level. EURCHF is now on a bullish drive that has seen it move past the 1.09190 key level. The Stochastic Oscillator has climbed into an oversold region and we could see a pullback before the price continues upward.

Market Prospects

After price breaks free of the 1.08700 key level, it returned to retest it before pulling higher. The MA period 9 has aligned itself below the 4-hour candles to push it further upward. The Stochastic Oscillator is also in accordance with the daily chart as it has climbed into the overbought region. We could see a retracement from the market back to 1.09190 before the price breaks higher to 1.09860.

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