EURCHF Analysis – November 17
EURCHF is set to flip bullish as the market begins its fifth impulse swing. Recently, the market experienced a bullish divergence as the RSI (Relative Strength Index) posted higher lows against the price’s lower lows.
This is likely to boost the confidence of the EURCHF buyers, thereby leading to a turnaround and increased buying pressure in the market.
Market Key Levels
Demand Zones: 0.9420, 0.9150
Supply Zones: 0.9840, 1.0100
EURCHF Long-Term Trend: Bullish
After the rebound at the 1.0100 resistance, EURCHF experienced a massive decline as the selling pressure increased. In fractals, the price breached the 0.9840 support, forming a major low at 0.9710. The major low formed at 0.9710 marked the end of the first swing of the impulse wave.
Following a rapid correction to the upside, the price hit the diagonal resistance. This led to the formation of a swing high at the 1.0000 psychological level.
From the 1.0000 psychological level, The pair resumed the market’s downward trend. The bulls exited the market, leaving more opportunity for the EURCHF sellers. The price continued exuberantly downward, invalidating the 0.9710 major low.
Following the rebound at the 0.9840 resistance, a bearish order block formed as the price resumed its bearish trend. A bullish trend is set to begin due to the divergence between the price and the RSI indicator.
EURCHF Short-Term Trend: Bearish
The market’s trend on the four-hour chart is bullish. However, following the bounce off the diagonal resistance, a significant correction to the downside is likely to occur. EURCHF is expected to retrace into the bullish order block in the discount zone before the bullish trend resumes.
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