Market Analysis – EURCHF Is Set to Continue Downward Having Bounced Off Its Trend Line
EURCHF has bounced off its bearish trend line in a consolidation formation. The price has been downsloping since reaching a height of 1.11500 on the 4th of March 2021. The upward movement was a result of a surge in the market which began on the 18th of February 2021. The market showed consecutive bullish candles. There was only a short retracement on the 25th and 26th of February 2021 before the price continued upwards to reach 1.11500.
The market has been moving in a downward consolidation to regain the space created by the earlier surge in prices. The market has done just that with its latest move. The daily candles have crashed into the trend line and are now moving up again. There have been two consecutive bullish candles and the market opened today with a bullish candle as well.
In its adventure downslope, EURCHF is seen to bounce off the confluence of the descending trend line and the lower border of the Bollinger Band. Also, on most occasions, it is the upper border of the Bollinger Band that knocks the price down. Currently, the market has followed the same pattern to bounce up from the confluence of the lower border and the trend line. The Stochastic oscillator is currently in the oversold region, showing there is space for more bullish moves.
EURCHF Key Level
Resistance Level: 1.09860, 1.09300, 1.08700
Support Level: 1.08230, 1.07830, 1.07370
On the 4-hour chart, EURCHF has bounced up from the confluence of the lower border of the Bollinger Band. The price is now resting on the middle line of the Bollinger Band for support to move further up.
The Stochastic oscillator is now at the border of the overbought region. This shows that there could be a pullback in price before the price continues its bullish foray. EURCHF is expected to keep moving up and reach the 1.08700 key level.
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