Price Analysis – Market Direction Will Be Determined After EUCHF Consolidation
EURCHF consolidation is next on the market’s agenda after plunging to below 1.07400. Over the past 5 months, EURCHF general direction has been downward. But the downward movement have had many events happen along it. Most importantly is that EURCHF has been able to overcome all the key levels that would have prevented it from falling including 1.08700 and most recently, 1.07400.
Significant Levels
Resistance Levels: 1.07400, 1.08700, 1.11500
Support Levels: 1.06700, 1.06000, 1.05120 
Also, the EURCHF has formed the habit of price consolidation at intervals. There were at least three time the market went into consolidation before it continued its decline. Also on the 29th of July 2021, price fall became steeper so much that it broke through its downward trend line. With that it was able to also break through the 1.07400 major support without much trouble. Incidentally, decreasing volatility has been accompanying the fall in price.
Having dipped below the 1.07400 major support, EURCHF is set for a phrase of consolidation. This will determine the next direction of the market, whether to continue a fall or to start an uptrend. A similar ranging movement had happened at this level between October to November last year. The RSI (Relative Strength Index) indication, though now plunged in the oversold region, has been on a sideways movement for the past 4 days.
Market Anticipation
Having fallen below 1.07400, it is as if bulls are getting revived and candles have stuck to the underside of the 1.07400 key level. The bears still have the overall bias as at this moment. This is shown by the RSI indicator, whose signal lines have been undulating in the lower half of the RSI scale. The buyers could really use the impending consolidation between two strong key levels to get some respite to shoot up thereafter. Currently, volatility itself is on a parallel as shown by the ATR (Average True Range).
We will be expecting price to recover and regain lost grounds upwards up till 1.08700.
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