EURCHF Analysis – Sellers Appear to Have Breached the 0.98500 Key Zone
EURCHF bears flex muscles below the 0.98500 key zone. The pair have been angling its strength below the 0.98500 key zone. After two months of consolidation between the 0.98500 and 1.00330 zones, the market has finally broken out. This breakout below the key 0.98500 level has signaled that the bearish trend is set to resume. The current price order flow is set up to be distributed, which implies that sell traders are more likely to cause further declines in the currency pair. This is great news for those who are looking to take advantage of the bearish trend and capitalize on the current market situation.
EURCHF Key Zones
Resistance Zones: 1.00330, 0.98500
Support Zones: 0.98500, 0.95000
The EURCHF currency pair has seen a battle between buyers and sellers in recent weeks, with the sellers ultimately emerging victorious. Last year saw major selling pressure push prices below the 1.00300 key zone, but buying momentum picked up again at 0.95000 as traders sought to neutralize its impact.
This resulted in a price struggle between buyers and sellers that is still ongoing today; however, it appears that the bears are beginning to gain the upper hand due to MACD (Moving Average Convergence and Divergence) reacting bearishly toward the current market sentiment. As such, traders should now be looking out for prices going lower towards the 0.96680 key zone as sell orders continue to dominate over buy orders from this point on.
Overall, the EURCHF bears have certainly flexed their muscles below the 0.98500 key zone, and this is likely to cause further declines in the currency pair. It will be interesting to see how the market plays out in the coming weeks and months.
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