Forex Trading: EURCHF Reached $1.126 Support Level, Potential Bounce

Forex Trading: EURCHF Reached $1.126 Support Level, Potential Bounce
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EURCHF Price Analysis – May 15

The pin bar candle formed on the daily chart at the demand level of $1.126 is a signal that the price may reverse. The price may bounce at the mentioned level in case the Bulls defend the $1,126 level.

EUR/CHF Market

Key levels:

Resistance levels: $1.134, $1.141, $1.149
Support levels: $1.126, $1.116, $1.108

 

EURCHF Long-term trend: Bullish

EURCHF is bullish on the long-term outlook. The currency pair was on the ranging mode within the descending channel last week. EURCHF price was on the upward movement towards $1.141 at the upper trend line. The price touched the mark and reversed with the formation of the Bearish engulfing candle, followed by another daily bearish candle. On May 13, a strong daily bearish candle emerged and broke down the former demand level of $1.134 and the price moved down towards $1.126 level.

EURCHF Daily chart, May 15

EURCHF has penetrated the two EMAs downside. The 21 periods EMA is above 50 periods EMA and the former trying to cross the later. EURJPY price is trading below the two EMAs as a sign of a bearish trend. The Stochastic Oscillator period 14 is below 25 levels (oversold level) making an attempt to bend to the north; this indicates that the bearish momentum is getting weak and the Bulls may take over. The pin bar candle formed on the daily chart at the demand level of $1.126 is a signal that the price may reverse. The price may bounce at the mentioned level in case the Bulls defend the $1,126 level. Further increase in the Bears’ pressure may break down the $1.126 and target $1.116 level.

URCHF medium-term Trend: Bearish

On the medium-term outlook, EURCHF is bearish. EURCHF was range-bound within the support level of $1.134 and the resistance level of $1.141 last week. The price touched the upper trend line and the price bounced off the resistance level.

EURCHF 4-hour chart, May 15

The price has declined to $1.126 level and morning star candle pattern has formed on the 4-hour chart and this may reverse the trend of the currency pair.

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About AzeezMustaph

> 86 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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