EURCHF Is Extremely Weak as the Price Is Seen to Sink Steadily

EURCHF Price Analysis – December 28

EURCHF is extremely weak as the price is seen to sink steadily. The market has been bearish since the 20th of September. The dive in the market was further confirmed by the prominent cross of the 9 and 21 Moving Averages. The price dropped from above the 1.0840 zone down to the 1.0370 zone, where it touched recently. It was faced with little resistance at the support zones at 1.0700 and 1.0530. The support zones were not well defended, so there was not much room for sideways movement before the zones were breached.

Major Zones on EURCHF

Resistance Zones: 1.0840, 1.0600, 1.0450
Support Zone: 1.0700, 1.0530, 1.0370

EURCHF Long Term Trend: Ranging

The downward trend on EURCHF has been well-formed; hence, a neat downward channel is prominent in the daily chart. The month of December started with bearishness till the support zone at 1.0370 was hit. There was an immediate bounce from the zone, obvious with a large bullish candle. Just one day’s bullish move on the 6th of December covered five previous bearish days. The bullish candle was still within the zones of 1.0450 and 1.0370. The bears defended the zone as they have usually done since September.

Both the support zone and the resistance zone are not willing to give way. This has caused a prolonged sideways movement. The market is ranging within its zones. The downward channel has been violated. The market has been in consolidation since the touch of the support zone at 1.0370.

EURCHF Long Term Trend: Bullish

The Williams percent range on the four-hour chart is currently in the oversold region as the last candle rests on the support zone. The demand zone is likely to act as support once more to propel the price back to 1.0450.

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