EURCHF Finally Succumbs to the Pressure of Rejection From 1.08700

EURCHF Analysis – Price Finally Succumbs and Falls at the 1.08700 Key Level

EURCHF finally succumbs to a strong rejection below the significance level of 1.08700. The market kept fluctuating around this key level by undulating through an expanding triangle pattern. Both bulls and bears were looking to take advantage of this pattern, but price was caught under 1.08700, consolidating with the 1.08300 support. Finally, EURCHF succumbs and falls.

EURCHF Key Levels

Resistance Levels: 1.07830, 1.08300, 1.08700
Support Levels: 1.07400, 1.07000, 1.06700
Since the drop in price below the 1.08700 significant level on the 8th of July, the scuffle between the bulls and bears has fashioned the movement of the market in a wavy manner. The price has been fluctuating between the key levels of 1.08700 and 1.07400. Buyers endeavored to put a stop to this trend when price rose on the 30th of August, pushing forcefully against the resistance level.

Rather than breaking through the resistance, the market only oscillated back and forth through an expanding triangle before price was hooked below, resulting in another fall. The Parabolic (Stop and Reverse) indicator already showed a downward plunge with its consecutive dots above the market. The RSI (Relative Strength Index) indicator also has its signal line fall deeply into the selling half of the chart.

Market Anticipation

After price falls due to rejection at 1.08700, the market is now plunged into the 1.07400 support zone. There are already signs of an imminent reversal, as price bounces off of 1.07000. This zone is the level at which the market has been observed to reverse upward in previous times, and we can expect another similar scenario in this case. The Parabolic SAR has switched to a supporting level for the 4-hour candlesticks to signify a definite reversal. The RSI shares the same sentiment, having risen to the 51 level.

EURCHF will be looking to break through 1.07830 and 1.08300 to confront 1.08700 again.

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