EURCHF Touches Down at 0.99760 Where It All Started From

EURCHF Analysis- The Price Touches Down at the Support Level From Where It Started

EURCHF touches down at the 0.99760 key level where it started its uptrend movement from. The downfall of the price is characterized by a spike, consecutive bearish candles, and very short retracements in between. As a result, the currency pair drops about 5% and touches the 0.99760 significant support level. A reaction is now expected from the bulls.

EURCHF Significant Zones

Resistance Zones: 1.04950, 1.03270
Support Zones: 0.97530, 0.99760
EURCHF has been striving to reach higher price levels despite the prevailing bearish pressure. This adventure begins from the 0.99760 key level. The market is seen to make consistent higher highs and higher lows. This helps the market get past a major level of 1.03270. Afterwards, more upward movement followed, taking EURCHF to the 1.04950 resistance level. Price failed to get through this level twice, leading to market failure.

The failure to immediately violate the 1.04950 resistance level forged the market into a double top chart pattern which is a bearish reversal pattern. This led to the dip in price beyond the neckline at 1.02470. More downward movement follows, violating 1.02000 and 1.01010 major level before the market plummets back to 0.99760 where it all began. The Stochastic has plunged into oversold as a result.

Market Expectations

Nevertheless, on the 4-hour chart, the price is undulating in a downward trend. This is shown by the alternating dots of the Parabolic SAR (Stop and Reverse) around the 4-hour candles as it dips. Interestingly, the Stochastic is currently rising, but it is expected to make a new lower before dropping to oversold again. This will make the price drop towards the next support at 0.97530.

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