EURCHF key Zones
Resistance zone: 1.11500, 1.08650
Support Zone: 1.05100, 1.06650
EURCHF Market Analysis
The market has been bullish since the 19th of May 2020. EURCHF is seen to climb on an ascending trend line on the daily chart with consistent higher lows. The trend line has been a support to propel EURCHF higher. A major consolidation is seen on the chart which lasted for sixty-seven trading days, from the 11th of November 2020 till earlier this year on the 16th of February 2021. A major breakout of the consolidation is seen from the 17th of February. The price rallied, breaking out of the resistance zone at 1.08650 till it reached the year’s high at 1.11500. This quick rise in price is currently experiencing a correction with a gradual price drop. The correction forms a descending channel on the daily chart.
EURCHF Market Anticipation
The market is generally on an uptrend on the daily chart. The current correction of the impulsive move seems to seek new support. The previous resistance zone at 1.08650 is likely to act as the new support for retracement in the market.
The Stochastic indicator is dropping to the oversold region as price seeks support to get ready for a buy.
The market trend is currently bearish on the four-hour chart which is a result of the retracement on the daily chart. The head and shoulder pattern is currently seen on the four-hour chart. Price would likely reach for the border of the descending channel at the break of the head and shoulder’s neckline.
The Moving Averages have crossed each other facing down, showing price bearishness. The Stochastic indicator is currently in the oversold region. This shows the market willingness to buy, to fill the descending channel as the price approaches the daily resistance level at 1.08650.
The market is currently bearish on the four-hour chart and bullish on the daily chart. It is therefore important to be patient for a sync of bullishness on both time frames for greater chances of winning trades.
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