EURCHF Repels Bearish Influence

EURCHF Analysis – The Market Repels Bearish Influence and Climbs Back Into a Triangle Pattern

EURCHF repels bearish exertion to rise back into its expanding triangle pattern. Buyers reacted to the sudden slump in price at the 0.99760 key level. As a result, the price jumped higher with consecutive bullish candlesticks. It is first anchored at the lower border of the triangle pattern before rising higher. However, weakness at 1.04010 repels the market and the price drops. EURCHF, though, remains within the triangle.

EURCHF Significant Levels

Resistance Levels: 1.06070, 1.04010
Support Levels: 0.99760, 1.03270
The expanding triangle design was initiated by the buyers to disrupt a bearish regime. The persistent influence of the sellers ensured the up-and-down movement of the price as bears and bulls struggle in the market. Sellers got stronger at a point and strongly drove the market downward, breaking through the lower border of the triangle. The price dropped about 6% to reach 0.99760.

Buyers, however, reacted strongly at 0.99760 and repels the bearish influence with a 4.30% price rise of their own. This increase in price brought it back into the triangle pattern. Buyers lost their strength at 1.04010, but the market remains within the triangle. EURCHF could resume its up and down movement within the triangle. The MACD (Moving Average Convergence Divergence) has its lines rising from a bearish position with active bullish bars.

Market Expectations

The market bulls get rejected at 1.04010 and then start declining towards the lower border of the expanding triangle formation. In the process of falling, the price has breached multiple key levels to reach the lower border. The Parabolic SAR (Stop and Reverse) indicator has placed its dot above the market, confirming the immediate bearish stance of the currency pair. However, EURCHF is set to stabilize itself at the lower border, from where it will rise towards 1.06070.

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