EURCHF Analysis – Bearish Momentum Reduces Due to Lateral Movement
EURCHF lateral movement has helped to stem the tide of the sellers. The market crashed to the 1.05300 demand level on the 1st of November with much momentum. However, buyers have successfully repressed the momentum using the demand level. The bears also kept pushing downward and didn't allow the market to move back above 1.06070. Therefore, EURCHF has only been undulating between and making a lateral movement between both key levels.
EURCHF Major Levels
Supply Levels: 1.06070, 1.09330
Demand Levels: 1.04010, 1.05300
The market's descent began after bulls drove the market up forcefully against bearish intensity. It was a powerful push-up, and when the price hit a bulwark at 1.09330, all bullish strength subsided in an instance. EURCHF began a free slide downwards, breaking through several major levels and even breaking through its initial downtrend line.
Price fall continued till it crashed into the 1.05300 critical support level, and since then, the market hasn't made any further foray downward and has continued a lateral movement above 1.05300. Bearish pressure remains though, so the bulls haven't been able to effect a reversal. The EFI (Elder Force Index), though still predominantly at a negative value, is already rising towards the zero level. While the Parabolic SAR has aligned dots below the candles to signal a price reversal.
On the 4-hour chart, the tide is now shifting in favor of buyers as the market continues its lateral movement. The EFI power line has been reacting to the zero level, but bulls can be backed to influence the market as they build momentum in consolidation. Price is currently moving up with the Parabolic SAR's dots below the 4-hour candles. If the bulls have another go at breaking through 1.06070, if they are successful, 1.06980 will be the next point of call.
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