EURCHF Stuck Below 0.9840 Despite Bullish Momentum

Market Analysis – Price Remains Stuck Below 0.9840 Level

EURCHF, amidst a prolonged bullish trajectory, encounters a significant impediment in the form of the resistance level at 0.9840. Despite witnessing a surge in bullish momentum since the beginning of 2024, marked by the currency pair effortlessly surpassing various resistance levels, breaching the formidable barrier at 0.9840 has proven elusive.

Key Levels for EURCHF

Supply Levels: 0.9840, 1.0000, 1.0080
Demand Levels: 0.9700, 0.9560, 0.9470

Following an unsuccessful breakout attempt in April, the resistance at 0.9840 triggered a swift descent in EURCHF’s price, leading it to the demand level at 0.9560. This retreat underscored the resilience of the resistance level and the challenge it poses to further upward movement in the market.

However, amidst this setback, indicators such as the Hull Butterfly Indicator turning green and the Parabolic SAR points positioned below daily candles continue to signal a prevailing bullish sentiment in the market. These indicators serve to reinforce the market’s optimistic outlook, suggesting that despite encountering resistance at 0.9840, there remains underlying bullish momentum.

The green signal from the Hull Butterfly Indicator and the positioning of the Parabolic SAR points further below the daily candles suggest that buyers may still be active in the market, potentially poised to resume their upward push. This resilience in the face of resistance highlights the ongoing tug-of-war between bullish and bearish forces, shaping the trajectory of EURCHF’s price movement.

Market Expectation

Buyers’ resilience is evident through attempts to challenge the resistance zone anew. However, the recent setback in May necessitated a retracement to the bullish order block at 0.9760 to gather momentum for another potential breakout. Despite the enduring bullish trend, the formidable resistance at 0.9840 poses a significant challenge.

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