EURCHF Signals Strong Bullish Breakout

Market Analysis – December 17

EURCHF signals a bullish breakout above the key resistance zone. The 9-period Simple Moving Average (SMA) at $0.93230 is trending upwards and acting as a dynamic support, confirming the strength of the recent upward momentum. Additionally, the Relative Strength Index (RSI) is at 65.80, indicating that the pair is approaching overbought conditions but still has room for growth before signaling exhaustion. The RSI crossing above the mid-level supports further bullish momentum.

EURCHF Key Levels

Demand Levels: 0.95070, 0.95810, 0.97740
Supply Levels: 0.92530, 0.92100, 0.91500

EURCHF Long-Term Trend: Bullish

The significant rejection at $0.92530 led to a strong push higher, breaking through the $0.93230 level, which previously acted as a supply zone. The formation of a bullish block (BB) around the $0.93230 level also confirms the area as a critical support for future pullbacks. This breakout, alongside a higher low formation, highlights the buyers’ strength in the current market.

Moving forward, EURCHF is projected to retrace toward the breaker block before continuing its upward trajectory. If the pair sustains this level, a further rally toward the next major resistance at $0.95070 is likely. Beyond this level, the $0.95810 zone becomes the next bullish target, aligning with previous highs.

EURCHF Short-Term Trend: Bearish

The EURCHF four-hour chart shows a bullish trend after breaking the descending trendline resistance and pushing above $0.93880. The 9-period SMA at $0.93890 continues to provide dynamic support, validating the upward momentum.

However, the Relative Strength Index (RSI) at 71.97 signals overbought conditions, suggesting a possible retracement. If the pair holds above these levels, the next bullish target lies at $0.95070, with the Breaker Block (BB) near $0.93200 acting as a strong demand zone on deeper pullbacks.

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