EURCHF is approaching strong support levels after slipping off the 1.08360 stronghold. On its way down, price tried to revive around the 1.07830 price level on October 1st, but the market was ultimately beaten down and the euro remained in a weakening position against the Swiss franc. The downward liquidity rush is now approaching a series of strong support levels which are capable of causing a market reversal.
EURCHF Critical Zones
Resistance Levels: 1.07830, 1.08360, 1.09320
Support Levels: 1.06720, 1.07010, 1.07230
EURCHF Long Term Trend: Bullish
The support levels which lie especially at 1.07230 and 1.07010 were responsible for keeping the bears at bay from the 3rd to the 25th of August. This allowed buyers enough time to gather momentum and overturn the market. The euro was then pumped till it encountered strong resistance at 1.08930. This led to a drop to a strong support level which helped the market bypass the 1.08930 resistance.
Bears clicked into gear once the market reached 1.09320 and a bearish engulfment candlestick was used to drive the price downward. EURCHF tried to hold above the 1.08360 strong zone, but it has slipped down under bearish pressure, also breaking through the MA period 50 (Moving Average) which initially kept it up. The Stochastic Oscillator has been gliding sideways in the oversold region, giving the buyers some time to work with to overturn the market.
EURCHF Short Term Trend: Bullish
The market remains on a downtrend on the 4-hour chart as the MAs sleep above the 4-hour candles. The market is currently reacting above 1.07390. This also happened at the 1.07830 price level before price dropped. Therefore, the market is still expected to drop further, at least to 0.7230 before bulls begin engineering a market reversal.
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