EURCHF Analysis – Price May Further Declines
EURCHF suffers ongoing bearish pressure, with the potential for further declines. The EURCHF currency pair has been grappling with persistent selling pressure. This trend has been prevalent for much of this year, particularly since January. The broader market sentiment has decidedly favored bearish forces. The current week is no exception, with sellers successfully breaching the significant 0.95160 level.
EURCHF Market Zones
Resistance Zones: 0.98740, 1.00000
Support Zones: 0.94090, 0.0.95160
The Bulls, who once had a dominant presence, struggled to maintain momentum. Their influence waned significantly as they failed to establish a firm foothold above the psychological parity level of 1.00000. After this setback, sellers took control of the pair, initiating a strong downward move.
A key aspect of this bearish outlook is the well-defined bearish trend line that has held firm throughout the year. The determination of sellers is evident, and if they continue to strengthen, there is a potential for more downpour. The EUR/CHF price could slide further towards the 0.94090 significant level. Interestingly, this level has not been touched since October 2022, making it a key focal point for traders.
The MACD (Moving Average Convergence and Divergence) indicator lends credence to this bearish sentiment. It indicates the potential for further downward momentum.
Market Expectation
On the 4-hour chart, sellers maintain their intent to push the price even lower. This implies that the price may indeed decline to the significant level of 0.94090. However, it’s also worth noting that trends can reverse rapidly. Hence, the buyers could regain control following a price reaction at this critical level.
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