Forex Trading: EURCHF penetrates $1.126 Support Level, Further Price Reduction Envisaged

Forex Trading: EURCHF penetrates $1.126 Support Level, Further Price Reduction Envisaged
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EURCHF Price Analysis – May 22

There is a probability that the bearish trend may continue in case of the daily bearish candle close below the demand level of $1.126. Increase in the Bears’ pressure may lead to a further decrease in price and the target may be $1.116 level.

EUR/CHF Market

Key levels:

Resistance levels: $1.126, $1.134, $1.141
Support levels: $1.116, $1.108, $1.098

 

EURCHF Long-term trend: Bearish

On the long-term outlook, EURCHF is bearish. EURCHF price was under the strong bearish pressure last week especially when the strong massive bearish candle broke down $1.134. The bearish momentum continued towards $1.126. Yesterday, there was a pullback with the formation of a bullish candle. Today, another strong daily bearish candle formed and penetrated the $1.126 demand level. The demand level of $1.116 is currently exposed.

EURCHF Daily chart, May 22

The 21 periods EMA is trying to cross the 50 periods EMA downside as a confirmation of the bearish trend. EURCHF continue trading under the 50 period EMA and 21 periods EMA. Meanwhile, the Relative Strength Index period 14 is under 40 levels and the signal level bending down to indicate sell signal and a further decrease in EURCHF. There is a probability that the bearish trend may continue in case of the daily bearish candle close below the demand level of $1.126. Increase in the Bears’ pressure may lead to a further decrease in price and the target may be $1.116 level.

EURCHF medium-term Trend: Bearish

On the medium-term outlook, EURCHF remains bearish. EURCHF has formed another descending channel chart pattern on the 4-hour chart which is an evidence of a bearish trend. The demand level of $1.126 is broken downside and the price is heading toward the demand level of $1.116.

EURCHF 4-hour chart, May 22

At the moment, EURCHF is carrying out pullback to test the broken level before the continuation of the bearish trend. The Relative Strength Index is at 40 levels and the signal lines pointing up to indicate buy signal which may be a pullback.

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About AzeezMustaph

> 132 Articles
Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management

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