EURCHF Analysis – The Market Remains Bearish Despite a Strong Reaction From 0.99760
EURCHF remains under bearish influence despite a sharp bullish reaction from the 0.99760 price level. The price broke down after a zigzag movement in an expanding triangle. Buy traders retaliated immediately as the price touched down at 0.99760. This caused the price to drive towards the lower frame of the expanding triangle pattern. However, the market keeps sliding down on the trend line.
EURCHF Key Levels
Resistance Levels: 1.03270, 1.06070
Support Levels: 0.99760, 1.01010
The market emerged from a bearish trend and oscillated through an expanding triangle pattern. Sell-traders, however, remained influential and struck on the 7th of February from the upper border. The price slumped past a host of key levels with minimal difficulty, crossed the lower frame and kept falling with consecutive bearish bars till the market struck the 0.99760 support level.
The bulls reacted strongly to assert their influence in the market, and they drove the price to the lower border of the expanding triangle. However, EURCHF is now exhausted and is now sliding along the lower border of the triangle pattern. Moreover, the 1.03270 resistance level is increasingly limiting the market. The RSI (Relative Strength Index) has slid below the zero level.
The price could be set for another bullish reaction on the 4-hour chart. The market is pushing hard against the lower band of the Bollinger Band, from which EURCHF could spring up. Moreover, the RSI line is close to the border of the oversold region. An imminent price rise is expected, and the price is expected to test the 1.03270 resistance level.
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