Eurchf Analysis – The Bears Successfully Led the Market Towards a Demand Zone of 0.9700
EURCHF Bears Successfully Led the Market Towards a Demand Zone of 0.9700. The market downtrend began on June 21, 2022, following the price breakout from the confined range. The market has been falling since the 4th of February, 2022, after the successful breakout from the ranges. The market fell until the 7th of March, 2022.
EURCHF Major Levels
Resistance Levels: 0.9810, 0.9970
Support Levels: 0.9700, 0.9660
The breakout from the consolidation was a ruse that sent the market back down to the previous support level of 0.9970. The bulls stormed the market after it hit the previous support at 0.9970, driving it upward. Because there are more bears in the market, bulls appear to be struggling to keep their long positions in a positive outcome as the bears sink the market after a double top.
In comparison, the downward trend between February 4th and March 7th is made up of only 20 daily candlesticks, whereas the upward trend between March 7th and June 21st is made up of more than 70 daily candlesticks. This indicates that the former’s momentum is much greater than the latter’s momentum, which implies that there are many more bears available and ready to drive the market downward than bears to drive the market upward. Following the breakout from the neckline of the double top and the daily trendline, the market continued to fall, forming a Fair Value Gap (FVG). This FVG was later responsible for the most recent swing high on the daily timeframe.
EURCHF Market Expectation
The market’s overall trend on the four-hour timeframe is bearish, as confirmed by the MA Cross and the four-hour trendline. The market has been maintaining its structure since June 9, 2022. A shift in market structure could completely reverse the current market trend. The market is expected to continue to fall until this shift in market structure occurs.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.