EURCHF analysis: the price is approaching a key level at 1.07700, where it will be tested again to go down
EURCHF is approaching a new test area at 1.07700 to go down. The price returned to the downtrend on August 12 after a significant decline to 1.09050, a significant significant area. Subsequently, the market has struggled to maintain its bearish trend. Then EURCHF falls on the consolidation and now makes a new test at 1.07700. Market consolidation is between the 1.07700 resistance level and the 1.07000 support level. The price seems impatient to gain more bullish strength as it maintains its build level.
EURCHF key levels
Resistance level: 1.00770, 1.09050
Support levels: 1.07000, 1.08350
However, the market continues to make a significant range between the two levels (resistance 1.07700 and support 1.07000). There seems to be a cross in the stochastic oscillator at 40.00. This indicates that there will be some upward momentum before the bearish trend resumes. This is despite the fact that the Parabolic SAR indicator (Stop and Reverse) already has three points above the daily candles, which is already targeting the market along with the most important bearish trend.
In the 4-hour chart, there seems to be some upward momentum as the Stochastic Oscillator continues to rise up to the 80.00 region. At this level, there is likely to be an indication of a cross indicating the end of the upward movement.
The parabolic SAR also shows an upward momentum as the candlestick approaches the key resistance area 1.07700. As the oscillator approaches the overbought region of the 4-hour chart, the price continues to react to the 1.0770 resistance before distributing down to 1.06500.
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