EURCHF Analysis – Price Plummets Through the 1.05300 Support Level
EURCHF plummets to a 6-year low after violating the 1.05300 strong support. The market’s bearishness has increased in momentum over the past 4 weeks. This sees price break lower than its current downtrend line. However, there is strong opposition to the fall of the market at 1.05300. But in the end, bears upped their game and forced the market below the support as the price plummets to a 6-year low.
EURCHF Key Zones
Resistance Zones: 1.09330, 1.10050, 1.11130
Support Zones: 1.06980, 1.05300, 1.04010
Price began a solid descent after failing at 1.11130, and from there, everything has been downward. Not even a forceful intrusion from the buyers on the 4th of October around the 1.06980 support could derail the bearish agenda. However, in addition to the strong opposition to the fall of the market at 1.06980, sellers also found strong opposition at 1.05300. But in both instances, after several days of accumulation, the market plummets downward.
EURCHF has now dropped further after over 10 trading days of consolidation at the 1.05300 support level. As a result, the market remains severely oversold as the Stochastic Oscillator lines have remained in the oversold region for up to a month now. The MA period 50 (Moving Average) remains above the market as it continues to be bearish. The price is predicted to drop further to reach 1.04010.
On the 4-hour chart, the candlesticks can be seen to be gyrating downward above the middle line of the descending channel. However, the price has fallen below the middle line in the last 8 hours, and bears are aiming to crash through the next key level at 1.04010. The MA period 50 remains above the market, and the Stochastic Oscillator is at the border of the oversold region. This shows that EURCHF is strongly bearish.
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