EURCHF Analysis – Price Drops to Significant Weekly Support Level Once More
EURCHF drops to the 1.07400 significant weekly support level for the third time in three months. This shows the insistence of the bears to go lower at the slightest opportunity. Buyers failed to lift the market out of the ranging zone between 1.08700 and 1.07400 and sellers are using the avenue to have a go at breaking down the impervious 1.07400 support zone whose influence extends to 1.06700.
EURCHF Significant Zones
Resistance Zones: 1.08700, 1.08300, 1.07830
Support Zones: 1.07400, 1.07000, 1.06700
Despite fluctuating heavily through an expanding triangle pattern, the market gets trapped below the 1.08700 resistance level and eventually drops. EURCHF is therefore continuing its ranging movement by dropping further to the support level at 1.07400. Bearish momentum increases as the market drops, such that EURCHF has drilled below the 1.07400 level. It remains to be seen if it can completely drill through the entire support.
On the daily chart, the market can be seen cranking between 1.07400 and 1.07000. The latest candlestick is a stronger and bullish one, which shows the recovery of the price from below the 1.07000 level, and may well signify a recovery of the market back above the 1.07400. While the MA period 20 (Moving Average) shows the general downtrend of the market, the RSI (Relative Strength Index) also shows its signal line already diverting upward from the bearish territory.
Currently, the price has traded to the upside of the MA period 20 with a strong bullish candlestick. The market is now approaching 1.07400 to break through it. If the price is successful in breaking through, it will move to the resistance level at 1.08700 to try to violate it again. The Relative Strength Index is very much in support of market bullishness and has risen past mid-level to the 55 mark.
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