EURCHF Analysis – The Market Continues to See Bullish Order Flow
EURCHF continues to see bullish order flow on the higher time frame. The market’s bearish order flow came to a halt on the 7th of May 2022. A swing low was formed immediately after the demand level was reached. The large bullish candles easily pierced through the previous demand levels as the bullish order flow was initiated.
Major zones on EURCHF
Resistance Zones: 1.0610, 1.0500 1.0380
Support Zone: 1.0200 1.0070 1.9960
The market ascended beyond the Moving Averages of Periods nine and twenty-one in March. The market faced resistance at 1.0380, so the bears drove the market upon the second test of the resistance level. The price fell to 1.0070, and the market formed a higher low at 1.0070 in April. The demand level supported the ascending momentum to foster the bullish order flow.
The market rallied to the next resistance level at 1.0500. The previous resistance level failed to hold price as the bulls ruled the market. An ascending channel was formed on the daily chart with the higher highs and lows.
The market dropped to form a higher support level. The ascending trend line prevented lower pricing in the market during May. The Moving Averages are below the daily candles to support the bullish order flow.
Market Expectation
The market consolidated from the 19th of May to the 2nd of June, as seen on the 4 hours chart. The bulls pulled through and swept the range. On the 9th of June, the resistance level at 1.0500 was tested. Retracement to 1.0380 is expected to provide sufficient momentum for the bulls. The market is expected to violate the resistance level at 1.0500 upon the second retest.
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