EURCHF Analysis – The Bulls are Taking A Breather
EURCHF bulls make a recovery above the 0.96530 market zone. The market has recently shown promising signs of recovery. This came after the bulls made a successful breakthrough above the significant 0.96530 market level. This tussling zone has acted as a substantial barrier for the buying market in the past few months. As a result, the market was locked into a perpetual phase of range-bound volatility. Despite the bearish force dominating the market since the start of Q2 2021, the bullish thrust has gained momentum.
EURCHF Key Levels
Resistance Levels: 0.98290, 1.0000
Support Levels: 0.96530, 0.95140
The 0.95140 market zone served as a major stronghold for the sellers, providing them with a resounding advantage. However, their dominance was significantly perturbed when they failed to suppress the price beyond this significant level. From the Bollinger Bands, a notable squeeze in the band was observed last week, suggesting potential volatility in the market. This however led to a bullish breakout.
Despite overcoming the 0.96530 level, the bullish momentum experienced a slight drop. This suggests the necessity for the bulls to amass more strength for further progression. An increased accumulation of this momentum is crucial for ensuring the sustainability of the bullish movement.
The Moving Average Convergence and Divergence (MACD) on the daily chart is currently displaying a positive wave, indicating a potential uptrend. This upward trend could strengthen the hands of the bulls.
As for the 4-hour time frame, it shows that the market is still in the consolidation phase. It indicates a state of equilibrium with no significant upward or downward trend. This phase needs to be surpassed with increased buying pressure for the upward momentum to proceed.
Traders would need to vigilantly watch for a potential squeeze in the price above the significant level of 0.96530. This could provide a promising opportunity for buyers to regain their lost ground and strength.
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