EURCHF analysis: opposes market crash as bulls strengthen
EURCHF bulls are strengthening with each falling market depth. Bulls began to rebel against falling prices to 0.08700 (which had acted as resistance to market consolidation earlier this year). The price bounced sharply at the first moment of contact. But a predominantly bearish market fell with a stronger push to split it a second time. There was greater opposition to the market falling to 1.08250 before the price finally fell.
EURCHF significant area
Areas of resistance: 1.08250, 1.08700
Support areas: 1.07830, 1.07400
All indications point to the oxen strengthening as prices fall. First, the gap between the last two lower lows has narrowed dramatically. The growth rate of the media market increases (price increase from 1.18% to 1.05%). The EFI (Elders Force Index) makes higher lows and goes up, thus showing a growing volume of buyers working in the background.
On a 4-hour chart, there is currently an upward advance towards the charts. The market has risen to the price level 1.07830 and the price is expected to rise further. The EFI force line has come out of negative values above the zero level, to show a growing support base for the bulls in the 4 hour period.
The MA 12 (Moving Average) period has moved below the 4 hour candles to support the market. EURCHF is expected to rebound support 1.07830 to at least reach the previous high. This would mean a significant reduction in the downward momentum. Sellers could still bring the market down from that point on.
Whether the market rises or falls or falls again, it is very likely that EURCHF will begin a new phase of consolidation between 1.08250 and 1.07830 as bears and bulls fight for dominance.
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