EURCHF Analysis – Sellers Aim for a Breakdown to Play Out
EURCHF is losing buying momentum as sellers are aiming for a breakdown. The sellers have recently been warring against buying deployment back to the 0.9957 key zone. The bulls are considered to be losing steam at the moment. This implies that if buyers eventually succumb to the selling traders, the price may remain flat. As the battle for influence continues to hold on to the currency pair, there could either be a break back beyond the 0.99570 key zone or a decline in price volume in the coming days.
EURCHF Key levels
Resistance Levels: 1.02570, 0.99579
Support Levels: 0.97350, 0.94900
The year is gradually coming to an end, and buyers are recently running out of steam. The sellers could add more pressure to the market. The buy traders have been dominant since the beginning of the last quarter of this year. Buy traders picked up price momentum from the 0.94900 key zone, and the volume price continued to surge upward as numerous key zones were smashed through. The bulls broke through the 0.97350 key zone before reacting above it. However, as the price continues to rise, buyers have failed to break through the 0.9957 key level.
The EURCHF has been consolidating beyond this key level for some time. The majority are currently making serious efforts but are being thwarted by sales action. The parabolic SAR (stop and reverse indicator) is rising, but the stochastic is recently overbought for buyers on the daily chart.
The sellers are currently causing a downturn in the market as we speak. The stochastic oscillator is now playing down as well, as sellers are now putting together their selling strengths. Price could therefore be set to trade to the 0.97350 key zone.
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