EURCHF Violates the 1.07400 Critical Price Demand Level

EURCHF Analysis – Price Violates Critical Demand Level

EURCHF violates the 1.07400 critical demand level and has sunk to a one-year low. The price began a downtrend immediately after it fails at 1.08700. The market sunk abruptly straight into the demand zone that extends from 1.07400 to 1.06700. EURCHF remained at the mid-level of 1.07000 in the demand zone as the market encounters resistance in drilling through. The price maintains persistence above the price line and eventually violates the demand zone.

EURCHF Significant Zones

Supply Levels: 1.07830, 1.08300, 1.08700
Demand Levels: 1.07400, 1.06700, 1.06000
EURCHF is poised to press on its bearish campaign after overcoming an interruption from the bulls. The interruption began when price crashed to the 1.07400 demand level. The market was repelled upwards, but price still kept on dropping. The market would then forge into an expanding-triangle to break upward above 1.08700. After strong reactions, the price was trapped below the level and begins to fall again.

The market fell directly into the demand zone where there was a temporary stop to the market's plunge. Eventually, EURCHF broke through the level and violates the demand. In sinking below the 1.08700 key level, the market has also traded to the downside of the MA period 50 (Moving Average) to confirm its strong intent for a fall. This sentiment is also echoed by the MACD (Moving Average Convergence Divergence), whose lines have dived deep below the zero level with big bearish bars accompanying them.

Market Prospects

On the 4-hour chart, EURCHF has also breached the next demand at 1.06000 and prices are falling hard. The MA period 50 now acts as resistance above the market. The MACD indicator also has its lines sinking very deep. Sellers dominate the market and the price is predicted to keep falling to 1.05120.

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