Market Analysis – EURCHF Dips to Continue Downtrend Consolidation Phase
EURCHF downtrend consolidation phase continues as the market gets knocked down from the upper border of its parallel channel. The market rose to a height of 11.500 on the 4th of March 2021. The last time the EURCHF attained a similar price was on the 8th of July 2019, and just like that time, the price immediately began a downtrend.
The downtrend of EURCHF has been systematic. The market has been ranging through a descending channel. This can be seen in consistent higher lows and lower lows made by the market. The middle line of the parallel channel acts alternatively as support/resistance for the candlesticks. The 1.09860 key level has hindered the market’s latest attempt to break out of the channel. This happened at the beginning of this month. This led to a huge drop in price which eventually led the price to fall directly to the lower border of the channel.
The 1.08230 also played its part in keeping the price from falling out of the channel. Rather is now retracing its tracks to keep ranging. The 9MA (Moving Average) shows the undulating nature of EURCHF. It also acts as support and resistance for the market flexibly. The drop in price to the lower border is reflected by the Parabolic SAR (Stop and Reverse) as a bearish move, shown by its dots above the candles.
EURCHF Key Levels
Resistance Levels: 1.09860, 1.09300, 1.08700
Support Levels: 1.08230, 1.07830, 1.07370
On the 4-hour chart, the candlesticks have bounced off the combination of the lower border and the 1.08230 key level. The candle closed in the last four hours with a strong bullish Marabuzo candle and the current candle also is bullish.
The 9MA has moved below the current candle to push it further upwards. The Parabolic SAR is yet to show a reversal dot, but with the latest candle close to the dot, the next dot should finally reflect the bullish nature of the market.
The market is expected to move up to the upper border of the channel to try to break out again.
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