EURCHF Bulls Edge the Market but Bearishness Persists

EURCHF Price Analysis – January 4

EURCHF bulls edge the market, but bearishness persists. Buyers finally set up a barricade at 1.03710, which was able to edge the market in their favor. Therefore, price breaks out of a long-draw descending channel on the 6th of December using a bullish engulfment candlestick pattern. However, bulls were able to kick on from here as the bearish pressure persists in the market. Therefore, the price hasn’t been able to climb past 1.04520 but has instead dropped lower.

EURCHF Significant Levels

Resistance Levels: 1.04520, 1.06070, 1.09330
Support Levels: 1.03710, 1.03270, 1.02260

EURCHF Long Term Trend: Ranging

Bears have been on a free course in the market right from the beginning of the last quarter of the year 2021. During this period, the fall in the price was through a descending channel and violated all key levels and barricades found along the line path. This continues till the bulls grew stronger and strengthened at the 1.03710 support level to put a stop to the plunge in price and break out of the descending channel.

Despite edging the market out of a steep decline, EURCHF is now set for an indefinite-ranging phase as bears still retain a level of influence in the market. The price is now confined between 1.04520 as resistance and 1.03270 as support. The Parabolic SAR (Stop and Reverse) still points to a predominantly bearish market by aligning several dots above the daily candles. The Stochastic Oscillator shows a climb above the oversold level, but the lines remain generally in the bearish half.

EURCHF Short Term Trend: Bearish

Having failed at least three times to break through the 1.04520 resistance, the market is in a downtrend again, albeit a gentle one. The market is undulating through a descending channel. The price is now dropping after crashing against the upper border of the channel and is set for a drop. This is confirmed by the Stochastic Oscillator, which has crossed downward from an overbought position.

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