EURCHF Monthly Support Is Insufficient to Halt the Price Decline to a Six-Year Low

EURCHF Analysis – November 23

EURCHF monthly support is not sufficient to halt the continuous fall in price. There was a temporary accumulation of price above the 1.05400 monthly support, but then price found its way below the level. Further support at 1.05040 was not able to halt the downslide in EURCHF either. The market has now touched down at 1.04450, a level it last got to on the 21st of July 2015. Therefore, EURCHF has now plunged to a 6-year low.

EURCHF Critical Levels

Resistance Levels: 1.08930, 1.09320, 1.09890
Support Levels: 1.08360, 1.07010, 1.05400

EURCHF Long Term Trend: Bullish

EURCHF has broken through several key levels and three major monthly critical zones to plunge to its current price level. After being rejected at 1.09320, the price fell to a major critical level of 1.08360, where bears were held for seven trading days. Following that, the price fell, breaking through key levels to reach 1.07010, where there was another period of accumulation before the market landed at 1.05400. It took several days, but EURCHF dropped even further.

At 1.04450, the market has now reached its lowest point in 6 years. Price is oversold as shown on the RSI (Relative Strength Index) indicator, whose signal line has been hovering around the oversold border since the beginning of November. We can fancy bulls stepping out of the shadows with an intent to influence the market, and there are signs of that effect. The latest three candles are reversal candles, including a handing man candlestick and a spinning top candlestick.

EURCHF Short Term Trend: Bullish

On the 4-hour chart, although still predominantly bearish, the market is responding to bullish promptings. The candlesticks can be seen to have climbed above the middle line of the descending channel. Also, the RSI indicator has risen rapidly to touch below the halfway line as bulls keep pushing the market. A major highlight will be if the bulls can push above the 1.05040 key level, they will be able to hold and push further upward above 1.05400 in the short term.

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