EURCHF has been in a downtrend recently. It tapped the major support level on H4, Daily timeframe, bringing the bearish pressure to a halt. This support deems to be the pivotal point for the EURCHF to be dragged back up. We would be looking for buys from this support till the next resistance. Once market starts forming the HH and HL structure on the price action, we will have a confirmation for the shift towards a bullish trend. Right now, we would be anticipating for a reversal move on the EURCHF

There is a descending pennant channel on the pair. We will wait for the market to tap the support trendline, extending towards the price of 0.7090. This tap on the trendline is likely to push the market back up. On the upper side, we have a descending trendline, awaiting for the breakout buys. This trendline would be the deciding factor for the pair. Whether the pair will go up or down, merely depends on the breakout buys of the trendline.

There is no solid retracement confirmation at this point in time. As the market has totally bottomed out, we need to wait for the impulse move in order to determine the Fibonacci retracement levels.

Both the EMA’s are currently in a bearish trend, with a bearish death cross. The recent EMA is the EMA 50, which would confluence with the resistance level. This confluence will be acting as our profit target for the buy positions.

RSI is at 26 and CCI at -90. Since both the oscillators are in a bearish region, extending towards the oversold area, we see a divergence buy forming on the CCI. This divergence is imminent for a counter move on the bullish side. Once CCI starts to pierce the neutral level, we will see the bullish pressure building up.

As a bottomed out pair, this support should act as a catalyst for the market to pounce up. Such strong support areas, usually have an impact with pressure.

What to draw from EURCHF?

Oct 07 2021

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