EURCHF Downtrend Comes to a Sudden Halt at a Key Support Level

EURCHF Price Analysis – October 9

EURCHF downtrend comes to a stop after hitting the strong support level of 1.05470. It was predicted that the market would plummet strongly, and there has been a free fall in price over the past 2 weeks in which the market crashed 3.6% over the duration of time. However, the downtrend now comes to a sudden stop as EURCHF hits the strong 1.05470 support zone.

EURCHF Important Levels

Supply Levels: 1.09890, 1.07390, 1.05890
Demand Levels: 1.05470, 1.05040, 1.04750

EURCHF Long Term Trend: Bullish

On the daily chart, the market can be seen making steady upward movement after taking off from the 1.05470 demand level on May 18th, 2020. Consistent higher lows can be discerned in the market. This continued till the last higher low above the 1.09890 price level, where bullish effort began to wane. Consequently, liquidity began to drop. The downtrend was gradual at first until the price reached the significant level of 1.08200, where EURCHF met bearish resistance.

After accumulating for a while at 1.08200, liquidity was forced downward. However, buyers intercepted the market at 1.07230 and wrestled the market back upward to 1.09320, above the MA period 50 (Moving Average). By this time, much bearish momentum had been stored and was unleashed. This then caused a down-surge in which the price dashed through the MA period 50 and plunged over 3.6% in just over 2 weeks. Now the market comes to a screeching halt at 1.05470.

EURCHF Short Term Trend: Ranging

EURCHF is currently sitting solidly above 1.05470 in the short term. However, bearish pressure persists and the market has been constrained into consolidation with 1.05890 acting as the resistance in the market. The RSI (Relative Strength Index) on the 4-hour chart has climbed above the 50 mid-level mark, which shows a positive response from the bulls. Buyers intend to use the present consolidation to influence the market in their favor, and they will be looking to drive the market up to 1.06580.

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