EURCHF Analysis – The Market Spikes Below the 1.03270 Key Support
EURCHF spikes back below the key support level of 1.03270. The price is initially seen trying to break this same price level from the downside in May through June. Buyers successfully forced their way through the market by the 6th of June. EURCHF, therefore, spikes upwards beyond multiple key levels. The market, however, meets acute resistance below the 1.04950 key level that disrupts the bullish activity and causes a downward spike.
EURCHF Critical Zones
Resistance Levels: 1.04950, 1.04010
Support Levels: 1.01010, 1.03270
The influence of the 1.03270 key level in the EURCHF market is well detailed. The price level stands as support to halt a strong bearish tide that flowed down from last year. By January 2022, the price direction has been oriented in a sideways movement. The 1.03270 level remained robust as the market ranged, until it was breached by the end of February 2022. After that, the critical level becomes resistant to the flow of the market.
The determination of the bulls put pressure on the 1.03270 key level from the downside. The level was broken, and the price spikes to the 1.04950 key level. The market was resisted here, and after a struggle, it dipped below 1.03270. Buyers revived and pushed against the level for another upsurge. Yet again, the EURCHF is rejected, and the price slumps sharply, falling below 1.03270. The Stochastic has plunged to the oversold level to this effect.
Not only does the market dip below the 1.03270 price level, but it also breaks to the downside of its ascending channel. The 4-hour chart shows that there is a development above the 0.01010 support zone, and the price has not been able to puncture below it. The EFI shows momentum with the sellers but also indicates progress among the buyers as its power line begins rising towards the zero level.
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