EURCHF Is Set for a Breakout

Market Analysis – January 3

EURCHF is set for a breakout on the daily timeframe. The market has narrowed down to a point where a breakout could occur.

EURCHF Key Levels

Supply Levels: 0.99120, 0.99500, 1.00520, 1.05120
Demand Levels: 0.98210, 0.97230, 0.96479, 0.94300

EURCHF Long term Trend: Ranging

EURCHF is currently in a correction phase. Massive displacements to the upside or downside have been absent since mid-November. The market has gyrated between the 0.95000 resistance level and the 0.97230 demand level. Lower highs and higher lows have formed a symmetrical triangle.

The market formed a double top at 0.95000 when the Stochastic and the RSI (Relative Strength Index) were overbought. The sellers attempted to sink the price but weren’t able to successfully push through the bull’s force. The market has been trapped between the descending trendline and the ascending trendline. The Average True Range has greatly declined, revealing that the market is consolidating.

EURCHF Short term Trend: Ranging

A symmetrical triangle has also formed on the 4-hour chart. A breakout is expected on the lower timeframe, which will eventually be evident on the higher timeframe to determine the direction of the market.

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