EURCHF Experiences Wild Bullish Breakout

Market Analysis – March 6

EURCHF has recently experienced a significant bullish surge. The price had previously struggled to continue its uptrend following a bullish reversal due to the resistance level at 0.95010. However, the recent price spike has shattered this resistance zone, enabling the price to continue its upward trajectory.

EURCHF Key Levels

• Demand levels: 0.93410, 0.92570
• Supply levels: 0.95010, 0.96840

EURCHF Long-term Trend

The EURCHF market created a range above the support level of 0.93410 in the last quarter of the year. This range was characterized by lower highs and equal lows, forming a descending triangle on the daily chart. Eventually, the price purged to take out previous lows, forming a spring for a reversal.

After a change of character (ChoCh), the price entered into a new consolidation phase. Although the price struggled to expand beyond the resistance level of 0.95010, it eventually broke out. Upon the last pullback to the support level of 0.93410, the price dipped into the oversold region. The Smoothed Supertrend indicator generated multiple bullish forex signals during this pullback, followed by a wild spike in price, leading to the bullish breakout.

EURCHF Short-term Trend

On the lower timeframe, the breakout appears as a series of bullish candles without a single bearish candle in the bullish displacement. Currently, the price is experiencing a retrace. The price is expected to reach 0.96840 shortly, as the bullish momentum continues to drive the market.