EURCHF Analysis – The Market Remains Bearish
EURCHF market trend remains bearish. Until the 7th of March, 2022, the market order flow had been bearish. After the previous support at 1.0510 was broken, the bears could not keep driving the prices downward until a fake-out turned the previous support level into a resistance level.
EURCHF Significant Levels
Resistance Levels: 0.9980, 1.5100
Support Levels: 0.9660, 0.9480
The reaction of the EURCHF market on the 7th of March, 2022 at the previous support of 0.9660 led prices upward and formed three equal highs. As the market retraces upward, the relatively weak momentum confirms that the market trend is not an uptrend but a downtrend. As prices kept rallying upward, three equal highs were formed. More bulls stormed the market, but only to drive the prices beyond the three relatively equal highs till the resistance at 1.0510 was hit twice.
The resistance level, which got hit twice, formed a double top, and the Relative Strength Index revealed that the market is overbought, which implies that the market would start sinking downward if the double top's neckline gets broken. The broken neckline and the cross of the moving average period nine below the moving average period twenty-one MA Cross (9, 21) further confirmed the downtrend. The EURCHF market trend has been bearish ever since the neckline of the double top got broken.
The EURCHF market trend remains bearish as prices keep breaking swing lows downward. Currently, the MA Cross indicates that the market is bullish. A change of character to the upside in the four-hour timeframe is needed to confirm the uptrend. The uptrend is expected to lead the market into the four-hour time frame order block, which will then lead the market down towards either the 0.9660 or the 0.9480 support level.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.