EURCHF Analysis – The Market Maintains a Downtrend and Is Severely Oversold
EURCHF maintains a downtrend as price drill deeper to the 1.04450 key level. The price has successfully bypassed another phase as it battles its way beyond the 1.05400 significant level to plunge deeper. The market shows no intention of slowing down either, as it also violates 1.05040 and drops to the next significant level at 1.04450.
EURCHF Key Levels
Resistance Levels: 1.09890, 1.09320, 1.08930
Support Levels: 1.04450, 1.05400, 1.07010
Buyers had a run-in on the market from the mid-last year, and they gradually caused an increase in price from the 1.05040 support level. Bears offered resistance as price rose, but their efforts were largely overshadowed by bullish momentum. A price surge around July, just before the market entered into a period of consolidation, emphasizes the bullish strength of the market at that period.
The market pumped up even further beyond 1.09890 as the year moved to February, and that was the peak of bullish prowess in the market. Bears who have stored up much momentum began to influence the market, gradually at first. When buyers put up resistance at the consolidation level, then the price began to fall steeply, shattering several key levels as the price dropped. The Stochastic Oscillator, as well as the RSI (Relative Strength Index) indicator, show that price is severely oversold.
Despite the forceful and continuous nature of the market's fall, the bulls aren't giving up without a fight. The 4-hour chart highlights critical levels where the bulls have tried to overturn the market. At the 1.08360, 1.07010, and 1.05400 key levels. At each level, EURCHF was held to a sideways movement before the price dropped further. Currently, the market has dropped to another sideways level at 1.04450. As a result, the Stochastic Oscillator and the RSI's signal lines rise to the mid-level. This key level is the hope of the buyers to overturn the market again.
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