EURCHF is cranking through an expanding triangle pattern as bears and bulls maintain an active state in the market. The price has dropped for the second time after hitting the upper edge of the triangle pattern. Therefore, this has created a cranking pattern through an expanding triangle in the market. Currently, the pair is at the lower edge, just above 1.02260, and it is expected to rally upward again.
EURCHF Critical Levels
Resistance Levels: 1.06980, 1.06070 Support Levels: 1.03710, 1.02260
EURCHF Long Term Trend: Bullish
After a long-drawn dominance of sellers in the market, buyers eventually gathered enough momentum at 1.03710 to confront the trend. Therefore, the price movement was altered in a lateral direction. However, sellers still hold a significant market share, and their influence is evident. EURCHF is seen to drop sharply after hitting specific levels of strength.
This has forged the trading space into an expanding triangle pattern. Currently, the price has dropped. The ATR (Average True Range) indicator suggests that market volatility is rising as the price keeps cranking through the triangular design. The Stochastic Oscillator shows the price is about to make a reversal from an oversold condition—an increase in volatility and the oversold nature of the market work in favour of buyers.
EURCHF Short Term Trend: Bullish
On the 4-hour chart, the display of a spinning-top candlestick is currently a sign of a reversal as price touches down at the lower border of the triangle. The Stochastic, in this time-frame, is also in the oversold region, and its lines have crossed each other upward. According to the ATR indicator, market volatility is still on the rise. The price is expected to rise toward the upper limit of 1.06980.
Note:Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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.
