Market Analysis – Sellers Ensure That EURCHF Keeps Falling
EURCHF keeps falling under pressure from the bears. This has been the trend since the 4th of March, when price was rejected at 1.11500. The market has since been sliding down till the present moment. The total decline in the market stands at 3.46% for a range of 106 trading days. The market tends to consolidate for a little while along the downtrend before it continues sliding. It did this on three occasions.
EURCHF Significant Zones
Resistance Zones: 1.11500, 1.08700
Support Zones: 1.07400, 1.06700
EURCHF has fallen below the 1.08700 support line, which once acted as strong resistance to the market from July last year until it was subdued on the 22nd of February 2021. This led to a strong market surge that reached 1.11500. EURCHF now keeps falling towards the 1.07400 support that kept it in consolidation for more than 5 months. During the duration of the 5 months, the support was only breached once on the 13th of October 2020.
All indications are in support of the market’s continuous decline. The MA period 30 (Moving Average) is predominantly above the daily candles. The MACD (Moving Average Convergence Divergence) has its signal lines well below the middle zero line, accompanied by red histogram bars. The bearish agenda, however, will be tested when the market touches down on the 1.07400 support. Should the sellers be successful, another antagonist in the 1.06700 support lies ahead.
Market Prospects
The market has executed another period of consolidation and dropped. What is more interesting is that it dropped even below the descending trend line. Like in the daily chart, the MA 20 is directly above the 4-hour candles and the MACD is also giving bearish signals. This shows how much pressure EURCHF is sustaining to go lower.
The 1.07400 support patiently awaits the fall of the market.
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