EURCHF Analysis – Sellers Wield the Will to Break Through the Critical Support Level
EURCHF sellers will try to plunge the market below the level where prices have been resisted since the beginning of the year. This will mean breaking through the market’s critical demand level, which extends from 1.07400 to 1.06700. Currently, sellers have drilled through the 1.07400 level itself. After much pounding, the price has also battered through the 1.07000 and has now reached the last level of the demand zone.
EURCHF Critical Zones
Supply Zones: 1.07830, 1.08300, 1.08700
Demand Zones: 1.07400, 1.07000, 1.06700
A consolidation zone exists from 1.08700 to the 1.07400 demand zone. EURCHF has been cranking through this zone since it fell into it on July 8. The latest attempt by buyers to break free of the consolidation zone proved abortive as the 1.08700 resistance level intercepted the market’s formation and knocked the price down. The market is, therefore, going on another ranging cycle. However, this time, bears are wielding the will to break through the critical support zone.
Having broken through the 1.07400 and 1.07000 levels, sellers are actively pushing the 1.06700 level. The market is all bearish at the moment. The MACD (Moving Average Convergence Divergence) has its lines plunged deep below the zero level, and the histogram bars also are bearish. The EMA period 20 (Exponential Moving Average) has remained above the daily candles to push it down.
On the 4-hour chart, both the MACD indicator and the EMA period 20 are indicating more bearish moves. But as in previous times, the critical support level will likely repel the market and buyers take over, but there remains a strong will among the sellers to breakthrough. Currently, prices remain closely above the 1.06700 price level, waiting for the next move.
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