EURCHF Bulls Disrupt the Market’s Downward Flow

EURCHF Price Analysis – December 14

EURCHF Bulls get a hold of the market to disrupt the downward flow of price. It can be seen that as price plummeted deeper, the buyers got more daring and more frequent in disrupting the market flow. As a result, on the 6th of December, the bulls went one better than the last time to force the market out of the descending parallel channel. Though the momentum is still with the sellers, EURCHF is now trading above the upper border of the channel.

EURCHF Significant Levels

Resistance Levels: 1.09320, 1.08930
Support Levels: 1.03680, 1.04450

EURCHF Long Term Trend: Bullish

The current downtrend in EURCHF began after price fell below the 1.08360 significant level on the 30th of September. It was a strong and forceful move by the bears that broke several key levels to conduct themselves downward. The bulls were helpless, and the barricades they set up at specific levels only slowed down the price slump rather than stopped it. But the bulls’ barricades became more frequent as the price dropped deeper.

The two major barricades that affected the price fall are at 1.04450 and the most recent at 1.03680. The most recent barricade caused the daily candles to be pushed up out of the descending channel. The MACD (Moving Average Convergence Divergence) shows bullish histogram bars even though the lines are still below the zero level, indicating that bulls are making moves in a bearish market.

EURCHF Short Term Trend: Bearish

In the short term, sellers are trying to regain the market. It can be seen that the 4-hour candles that initially climbed above the MA period 10 (Moving Average) have fallen below it again, although the candles all remain above the parallel channel. The MACD line can be seen drooping as sellers try to regain the market. We could see more downward movement before buyers pull out a reversal trick to move the price upward.

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