EURCHF Analysis – Power Tussle Moves the Market Through an Expanding Triangle
EURCHF continues through an expanding triangle and bears and bulls remain locked in the tussle for market dominance. Bears appear to have used the resistance at 1.08700 to step in to influence the market. This began immediately after EURCHF climbed above the level on the 8th of September 2021. Price immediately dropped to 1.08330. Since then, the market has been moving in a wavy manner around 1.08700.
EURCHF Critical Zones
Resistance Zones: 1.08700, 1.09190, 1.09860
Support Zones: 1.08330, 1.07830, 1.07400
The general approach to the EURCHF has been one of dominance. The market had been bossed by the bears since the beginning of March. However, after dropping to a strong support level at 1.07400, bulls found a way to overturn the market in their favour. Though the price would drop again at 1.08330, the bulls restarted their takeover of the market. With a retest at 1.07400, the price embarked on a bullish spree.
The bears have, however, used the zone of weakness at 1.08700 to disrupt the bullish flow. 1.08700 is a major key level for the market, which in times past has confined the market to consolidation for a prolonged period. EURCHF has therefore been reacting at this level, so much so that the market now continues moving through an expanding triangle pattern. A golden cross by the Stochastic Oscillator at the oversold border indicates the price is now rallying upward.
After falling below the 1.08330 key level, it has been a bit of a struggle for the market to continue upward. EURCHF has finally broken free of the level and retested it to leap upward. The market is now rallying upward, firstly to break through the 1.08700 level itself, then to aim to move past 1.09190, and eventually to break out of the expanding triangle pattern.
The Relative Strength Index shows that power is gradually being acquired by bulls now that its signal line has crossed the 50mark into the buying half. There is still room for price to rise, but if it fails to break above 1.08700, bears may drive the market below the triangle pattern.
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