EURCHF Analysis – Price Remains in a General Uptrend Despite Rejection at 1.05100
EURCHF remains in a general uptrend direction despite the drop in price from the 1.04950 resistance level. The price has ensured continuous upward progress after leveraging the confluence junction at 1.01010. Even though the upward movement is characterized by retracements after each leap, the buyers ensure that the market keeps making higher highs and lows. This is the situation till the price reaches 1.04950.
EURCHF Key Levels
Resistance Levels: $1.03270, $1.04950, $1.06070
Support Levels: $0.99760, $1.01010, $1.02470
EURCHF swayed the market in a bullish tide when it reversed a bearish setup for upward movement. The bearish setup also began at a confluence zone at 1.06070. This led to a major drop of around 6% to the support level of 0.99760. However, it is at this level that a rally also kicks off. Bulls reclaimed up to half of the lost price level before they met rejection at 1.04010, but the price halted the drop at a higher low.
The higher low is at the 1.01010 confluence zone. This strengthens the price and the currency pair is seen to make more progress upward by making more higher lows. The next higher low was at 1.02000. However, a setback befell the market at the latest resistance level of 1.04950, where the price dropped hard, almost equaling its previous low. Notwithstanding, the price remains in an ascending channel and is likely to continue its uptrend.
Market Expectations
On the 4-hour chart, the price is seen to anchor itself above the 1.02470 support level, which is still a bit higher than the former low by around 0.3%. The Stochastic Oscillator lines have likewise plunged to the oversold region and are about to rally upward. The switch of the dots of the Parabolic SAR (Stop and Reverse) to below the candlesticks should all but confirm an upward drive. The price will attempt to make a higher high above 1.04950.
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