Price Analysis – EURCHF Have Gradually Plunged to 1.08250 in 100 Trading Days
Bears have gradually plunged EURCHF back to its initial breakout point at the 1.08230 key level. On the 19th of February 2021, bulls escaped a mini-market consolidation to shoot price up from the 1.08250 support. The market soared beyond the key levels of 1.08700, 1.09300, 1.09860, 1.10300, 1.10770 to reach 1.11500. This price surge took 10 trading days to skyrocket from the 1.08250 key level to the 1.11500 key level.
EURCHF Key levels
Resistance Levels: 1.08700, 1.09300, 1.09860
Support Levels: 1.08250, 1.07830, 1.07370
Bulls got exhausted after reaching the 1.11500 key level, and price immediately began a decline, bouncing down a downtrend line. EURCHF entered a mini-consolidation from the 16th of March to the 7th of April 2021, after which the market broke out downward to continue its downtrend. There was another consolidation phase that spanned 21 trading days from the 10th of May to the 17th of June 2021, after which price decline continued. EURCHF has now fallen into the third consolidation around the 1.08250 support.
After 100 trading days, bears have plunged the market back to the 1.08250 support. In the process, EURCHF has been brought into subjection to the MA period 100 (Moving Average), which moved above the market on the 7th of June 2021 till the present moment. The RSI (Relative Strength Index) is currently at 43.95 but reflects the current rise in price in the consolidation.
EURCHF has dropped into its third consolidation along its downtrend. The 4-hour time frame shows that the 1.08250 key level has been very influential, alternatively acting as support and resistance. At the time of writing, the market is crashing towards support. The RSI indicator is at 47.45 and points downwards to show a drop in price within the consolidation.
At 1.08250, the key level where price initially sprang up, a bullish reaction is expected. If the market manages to break below the support and the downtrend line, price will fall hard and likely reach 1.07370.
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