EURCHF is under pressure from sellers to keep falling. This has been the case since the market hit the 1.09320 supply level. There was an immediate rejection and EURCHF fell under. From there, the plunge continued till price fell to the 1.08360 price level. Buyers were expected to take advantage of the agitation from sellers but didn’t make it in time. There was further liquidity fallout as multiple key levels were breached. EURCHF is currently having a breather at 1.06720.
There has been a recurring change in market tenure as sellers and buyers have had turns dominating the market. The bullish tenure that began the year came to an end as the price fell under the 1.09890 significant level. The market would keep plunging till 1.07010 when a bullish revival occurred and though sellers fought back, buyers prevailed. The bullish tenure has now been terminated at 1.09320.
The market began falling under pressure, breaking past the weekly price level at 1.08360. The market kept falling till price was confined between 1.07390 and 1.07010. After 11 trading days, EURCHF drilled downward again. But there is now a pullback at the 1.06720 demand level. The Stochastic Oscillator has been abiding in the oversold zone for a long time. This means that a market reversal is imminent.
EURCHF Short Term Trend: Bullish
In the short, the market has started making moves for a bullish revival and the first thing to be done is to trade to the upside of the MA period 20 (Moving Average). Thereafter, breaking past the 1.07010 price level and holding above it is then critical to kickstarting the bullish tenure. The Stochastic Oscillator has dropped from the overbought region border and is reacting at the oversold region border.
The next market’s move will determine direction. A drop in its signal line at this point will indicate temporary resignation by the buyers.
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