EURCHF Bounces up Upon Reaching Support at Confluence Zone
EURCHF resumes uptrend after a dive into the support zone. The market experienced a major trend reversal on the 18th of May 2020. This was seen with a large bullish engulfing candle on the daily chart. The bulls aimed for a higher price but were stopped out multiple times at the 1.08850 zone which formed a resistance. At each point of defense on the resistance level, the market price dropped without violating the previous existing lows. The new lows formed were higher forming an ascending triangle. The bulls eventually broke out of the resistance on the 23rd of February 2021. The aggressive rise in the market was exhausted at the 1.11500 level. 
The bears have driven the market into the previous resistance zone. The bears stepped in and caused a deep retracement. The retracement is seen with lower highs and lows which formed a descending channel. The point at which the market strikes the resistance zone is just on the ascending trend line. The previous resistance zone is at the lower border of the descending channel formed by the retracement. The market has retraced into a very strategic area which is a confluence. The confluence formed major support which has propelled price.
EURCHF Key Zones
Support Zones: 1.05100, 1.06650
Resistance Zones: 1.08850, 1.11500
EURCHF Prospects Upon Rally From Support Zone
The Moving Average Convergence Divergence (MACD) has crossed each other and looking upwards. This signifies the beginning of a rise in price on the daily chart. The previous resistance is currently acting as a support for the price.
The Relative Strength on the daily chart is currently reading 49.0 which shows that the market is about to cross to the bullish side. 
On the four-hour chart, a break in market structure has been confirmed. Price is therefore expected to rise. The support at the confluence zone is therefore expected to propel the market to reach for the 1.11500 key zone.
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