EURCHF Price; Support Level of $1.092 May Holds and the Price Reverse

EURCHF Price; Support Level of $1.092 May Holds and the Price Reverse
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EURCHF Price Analysis – August 07

Increase in the Bulls’ momentum will push up the price towards the resistance level of $1.098 and the level may be penetrated by the Bulls. In case the resistance level of #1.098 holds, the price may reverse.

EUR/CHF Market

Key levels:

Resistance levels: $1.098, $1.104, $1.110
Support levels: $1.092, $1.084, $1.0779

 

EURCHF Long-term trend: Bearish

On the long-term outlook, EURCHF is bearish. EURCHF continue the bearish movement within the descending channel. Last two weeks, the price was consolidating at $1.1049. The bearish momentum broke out bearishly at the level on July 31 and the price rolled down and broke down the former demand levels of $1.0988 and $1.092. The price touched the support level of $1.092 on August 05 and bounced up. A bullish candle emerged and broke up the $1.092 level yesterday. Another bullish candle opened the EURCHF market today which indicates that the price may increase towards the resistance level of $1.098.

EURCHF Daily chart, August 07

The currency pair is currently trading at a far distance to the two EMAs; that is below the 21 periods EMA and 50 periods EMA which connotes strong bearish trend. Increase in the Bulls’ momentum will push up the price towards the resistance level of $1.098 and the level may be penetrated by the Bulls. In case the resistance level of #1.098 holds, the price may reverse. The Stochastic Oscillator period 14 is at 25 levels with the signal lines pointing up to indicate a buy signal.

 

EURCHF medium-term Trend: Bearish

On the medium-term outlook, EURCHF is bearish. The bearish momentum continues in the EURCHF market. The price dropped to the demand level of $1.092 on August 02 but the level could not hold the price. EURCHF price penetrated the level and exposed to the demand level of $1.084. Further decrease in price was interrupted by the Bulls with the formation of tweezer bottom candle pattern. This candle pattern reversed the price and it is currently approaching $1.098 supply level.

EURCHF 4 hour chart, August 07

The Stochastic Oscillator period 14 is above 80 levels and the signal lines strongly pointing up to indicate a strong buy signal.

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About AzeezMustaph

Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.