EURCHF Continues Correction After a Large Impulsive Swing

Key Levels
Demand: 1.11300, 1.09700
Supply: 1.08600, 1.07400

EURCHF repeats the same consolidation pattern after volatile market moves. EURCHF experienced very volatile moves from 16th to 25th of February where it was consecutively bullish. The impulse move reached its highest on the eighth day after which it dropped into a consolidation phase. It has been ranging between the resistance level 1.11300 and support level 1.09700 from the 25th of February till yesterday 5th of May. The whole impulse and consolidation structure is a repetition of earlier price movements on the chart. Price moved impulsively between the 9th and 10th of November 2020. Afterward, price began to range all through into this year till the 15th of February when another impulsive move happened again on the daily chart.

EURCHF Prospects
On the daily chart, EURCHF closed yesterday 5th of March with a bearish candle just below the support level which might just be a successful break out of the range to plunge into the next resistance zone at 1.0865. The candles formed below the support level might just be a stop hunt before price bounce higher into 1.11300 resistance level. The candle on the daily chart is currently bullish which looks like the breakout might be false.

Price has slightly moved above the support level at 1.09700. It lies at 0.382 on the Fibonacci which is above the equilibrium. The price might likely break the range to run below equilibrium at 0.500 to seek stronger support.
On the 4-hour chart, lower highs are visible within the consolidation. Price has bounced off a descending channel border on the 4-hour chart right into the support level. This might be a retest before price seeks support below equilibrium levels. The price might as well continue to rally from the bounce off the descending channel lower border straight up into the higher border of the channel on the 4-hour chart.

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