EURCHF Analysis – Market Fall Is Being Opposed as Bulls Are Getting Stronger
EURCHF bulls are getting stronger with every depth that the market falls. Bulls started getting rebellious against price drop at 0.08700 (which had acted as a resistance for market consolidation earlier in the year). Price bounced up strongly from it at the first time of contact. But a predominantly bearish market dropped with a stronger impulse to split it open for the second time. More opposition to the market’s falling was met at 1.08250 before price eventually slipped down.
EURCHF Significant Zone
Resistance Zones: 1.08250, 1.08700
Support Zones: 1.07830, 1.07400
Buyers showed an even stronger intent at the 1.07830 key level (which kept the market in consolidation earlier in the year by defending price from getting lower). Its zone of influence reached 1.06700. When the market dived into its zone, it was immediately pumped up with a stronger impulse. And though sellers will strike back to plunge price again, it is to a slightly lower depth, and bulls are responding similarly also.
All indications point to the fact that bulls are getting stronger as price plunge lower. Firstly, the gap between the last two lower lows has reduced drastically. The rate of market upthrust from the supports is increasing (1.18% to 1.05% price increase). The EFI (Elders Force Index) is making higher lows and climbing upwards, thereby showing an increasing volume of buyers working in the background.
On a 4-hour chart, there is currently a bullish move up the charts. The market has ascended to the 1.07830 price level, and price is set to bounce further upward. The EFI force line has climbed out of negative values above the zero level, to show an increasing support base for the bulls in the 4-hour time frame.
The MA period 12 (Moving Average) has moved below the 4-hour candles to act as support for the market. EURCHF is expected to bounce off the 1.07830 support to at least reach the previous high. This will spell a significant reduction in bearish momentum. Sellers could still drive the market lower from this point.
Whether the market climbs higher or falls again, EURCHF is very likely to commence a new consolidation phase between 1.08250 and 1.07830 as bears and bulls fight for dominance.
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