Sat. Oct 16th, 2021

Price analysis: market direction will be determined after EUCHF consolidation

EURCHF consolidation is next on the market agenda after falling below 1.07400. Over the last 5 months, EURCHF’s general management has been downward. But the downward movement has had many events throughout it. Most importantly, EURCHF has been able to overcome all the key levels that would have prevented it from falling, including 1.08700 and, more recently, 1.07400.

Significant levels

Resistance levels: 1.07400, 1.08700, 1.11500
Support levels: 1.06700, 1.06000, 1.05120
EURCHF consolidation

In addition, the EURCHF has formed the habit of consolidating prices at intervals. There were at least three times that the market consolidated before its decline continued. Also on July 29, 2021, the fall in prices became stronger as it broke its downward trend line. With this, it was also able to break the main support 1.07400 without much trouble. By the way, the decrease in volatility has been accompanying the fall in price.

After falling below the important support of 1.07400, EURCHF is planning a consolidation phrase. This will determine the next direction of the market, either to continue a fall or start an uptrend. At this level, there has been a similar movement going from October to November last year. The RSI (Relative Strength Index) indication, although it has now fallen in the oversold region, has been moving sideways for the past 4 days.

EURCHF consolidation Anticipation in the market

After falling below 1.07400, it’s as if the bulls are recovering and the candles are sticking to the bottom of the key level of 1.07400. Bears still have the general bias at the moment. This is demonstrated by the RSI indicator, whose signal lines have been wavy in the lower half of the RSI scale. Buyers could use imminent consolidation between two strong key levels to get a break to shoot later. Currently, volatility itself lies in a parallel, as shown by the ATR (Average True Range).

We will wait for the price to recover and recover the lost land up to 1.08700.

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