EURCHF failure to overcome the critical level at 1.06070 has sent the price tumbling back to the support level around 1.03270. In the space of 2 weeks, the price has engineered a rally from the support level to reach 1.06070. However, failure to get further beyond this level has now crashed the market back to the support level. It remains to be seen if the failure will spur the buyers or further empower the sellers.
EURCHF Key Levels
Resistance Levels: 1.06070, 1.05100 Support Levels: 1.03270, 1.03710
EURCHF Long Term Trend: Bullish
The plan of EURCHF buyers to change the market’s fortune after a long-drawn bearish saga has thus far been a fiasco. The market keeps failing and dropping at key levels. Firstly, it was at 1.05100 where bullish momentum dropped, sending the price crashing to the support level. Now, the price has failed to break through the 1.06070 critical level and has fallen back to the support level.
The good news for buyers, however, is the strength of the 1.03270 support, which has prevented the price from slumping lower than that. From there, there is always a chance of a bullish resurgence in the market. The next rally in the market is predicted to go a step further and break 1.06070. The Stochastic indicator is already rising from an oversold region, meaning a reversal is imminent.
EURCHF Short-Term Trend: Bullish
On the 4-hour chart, the price is still dropping towards the support level and the indicators have both been signaling an imminent reversal in the market. The Relative Strength Index indicator has just plunged into oversold while the Stochastic has been undulating in it. The price is expected to rebound strongly towards the critical level of 1.06070 and aim to break it.
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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.
