EURCHF bulls pull back to take a retest of the demand level at 1.08330 to continue their rally. The market has been very strong in its bullish rally, climbing from 1.07400 to 1.08700 in just a matter of 8 trading days. The rally was triggered by the weekly demand level at 1.07400. The price also had to pull back to the demand level on the 27th of August before making a surge upward.
EURCHF Important Zones
Supply Levels: 1.08700, 1.09300, 1.09860
Demand Levels: 1.08330, 1.07830, 1.07400
The pump of the market by the 1.07400 weekly demand level was a strong reaction to the continuous market plunging that sellers have embarked on since the beginning of April. The first time the market dropped to the key level was on the 3rd of August 2021, but the price was immediately repelled upwards. Sellers, however, were unrelenting, and the market was knocked down again at 0.08330 with increased volatility.
The second time EURCHF falls back, it sank below the 1.07400 demand level. The fall in price was stopped at 1.07000, with the price retesting it several times before climbing above 1.07400. Here, price had to pull back before embarking on the pump.
After breaking through 1.08700, there is now a pullback to 1.08330 demand, where price is expected to rebound and continue its rally, as indicated by the Parabolic SAR (Stop and Reverse) indicator. The Average True Range indicator shows that at this current level, market volatility has doubled, and bulls will fully explore it to continue their rally.
The 4-hour chart shows that price bounced up with much volatility when it pulled back to 1.07400. The market then embarked on an upward movement with consistent higher highs and lows till it climbed above 1.08700. EURCHF has now fallen to 1.08330, where it is expected to bounce up strongly again. The Parabolic SAR currently reflects the market retracement by having the dots above the 4-hours candle.
EURCHF is expected to leap past the 1.08700 key level to the 1.09300 supply level.
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