EURCHF Analysis – The Market Has Resumed Its Bearish Trend on EURCHF
EURCHF has resumed a bearish trend after a long-term consolidation. The bears have broken the demand level at $1.010 and reached $0.980.
EURCHF Major Levels
Resistance levels: $1.090, $1.050
Support levels: $1.010, $0.980
EURCHF market reached its yearly high the previous year during March. The market rallied above the $1.090 supply level. The Stochastic indicator revealed the market was already overbought. This led to a bearish market reversal during the month of March. The market initiated a bearish trend. The market dropped consistently for the rest of the year. The current year started with a bullish retracement, which seemed to be a change in the market direction. The daily candles pressed upon the upper Bollinger band. This was followed by a bearish impulse that lasted for several days on EURCHF’s market.
The price fell further to $1.010. The bearish impulse was paused at the major demand level of $1.010. The market rose to $1.050, where the bulls faced resistance. The market consolidated from March to June between the resistance level at $1.050 and the support level at $1.010. In June, the market was oversold, as seen on the Stochastic. The daily candles pressed on the upper band of the Bollinger, which led to a breakout below $1.010. The successful breakout has caused a continuation of the bearish trend.
EURCHF market is currently oversold on the four-hour chart as well as the daily chart. The market has shown a bullish reaction at the $0.980 support level. The support level was aligned with the lower border of the descending channel. This is expected to foster a bull run to the upper end of the channel above $1.010.
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