You are here: Home > articles > Forex > Technical Analysis – EURCHF bulls could soon regain market control
Technical Analysis – EURCHF bulls could soon regain market control
October 24, 2023 12:27 pmVideo
Latest News
- Trading Signals for ETH/USD (Ethereum) for April 12-15, 2024: buy above $3,435 (3/8 Murray – 200 EMA) April 12, 2024
- EUR/USD. Analysis for April 12th. The euro falls down under the pressure of the news background April 12, 2024
- GBP/USD. Analysis for April 12th. A significant event: the pound fell below the 25-figure April 12, 2024
- Trading Signals for EUR/USD for April 12-15, 2024: buy above 1.0620 (-2/8 Murray – rebound) April 12, 2024
- GBP/USD: trading plan for the US session on April 12th (analysis of morning deals). The pound followed the euro April 12, 2024
- EUR/USD: trading plan for the US session on April 12th (analysis of morning deals). The euro continues to fall April 12, 2024
- EUR/USD and GBP/USD: Technical analysis on April 12 April 12, 2024
- EUR/USD: Dovish signals from the ECB and rising PPI April 12, 2024
- EUR/USD. April 12th. ECB meeting: confidence in rate cut increased in June April 12, 2024
- GBP/USD. April 12th. British economy continues to stagnate April 12, 2024
- Analysis and trading tips for EUR/USD on April 12 (US session) April 12, 2024
- Analysis and trading tips for USD/JPY on April 12 (US session) April 12, 2024
- Analysis and trading tips for GBP/USD on April 12 (US session) April 12, 2024
- Weekly Forex Outlook: 12/04/2024 – More inflation data on the way as rate cut bets in disarray April 12, 2024
- Technical Analysis – GBPUSD ticks down to new 5-month low April 12, 2024
- Bitcoin holds above $70,000 as halving event looms – Crypto News April 12, 2024
- Week Ahead – More inflation data on the way as rate cut bets thrown into disarray April 12, 2024
- Bitcoin will thrive during supply crisis April 12, 2024
- Technical Analysis – EURUSD plummets after US CPI and ECB decision April 12, 2024
- Will US retail sales add juice to the dollar’s rally? – Preview April 12, 2024
EURCHF edges lower today after strong rally yesterday
Significant sell-off recorded since end-September high
Momentum indicators appear ready to turn bullish
EURCHF almost tested the all-time low at 0.9403 in an aggressive sell-off since the end-September high. This prompted a reaction from the bulls by recording two strong green daily candles. EURCHF is edging lower today as the bears are trying to find their footing especially as the momentum indicators do not appear to support their bearish intentions anymore.
In more detail, the Average Directional Movement Index (ADX) peaked on October 20, and it now appears to be heading aggressively lower, signaling that the short-term bearish trend has probably run its course. Interestingly, the RSI remains a tad below its 50-midpoint, revealing the presence of bearish pressure. However, the stochastic oscillator looks ready to give a strong bullish signal as it prepares to jump above its moving average and exit its oversold territory.
Should the bears remain committed to making lower lows, they would try to stage a move towards the September 26, 2022 low at 0.9403. If they are successful in overcoming this level, they will have the chance to record a new all-time low.
On the flip side, the bulls are keen on pushing EURCHF higher, even if this comes in baby steps. The next resistance area comes at the 0.9552-0.9571 range, defined by the August 23, 2022 low and the 50-day simple moving average (SMA). Even higher, the bulls could target the very busy 0.9626-0.9650 range, but they first have to overcome the important June 9, 2022 downward sloping trendline.
To sum up, the bears continue to hold most of the cards but a new move towards the all-time low of 0.9403 needs much more than stronger support from the momentum indicators.
Related Posts: