EURCHF Analysis – The Bulls Get Squeezed Out as the Market Keeps Crashing Downward
EURCHF bulls get squeezed out as the market keeps crashing downward. The current market trend began five days after the swing high, formed on the 9th of June, 2022, was attained. This current phase of the downtrend is a continuation of the downtrend which was suddenly halted by the bulls’ willingness to control the market on the 7th of May, 2022.
EURCHF Significant Levels
Resistance levels: 0.9800, 1.0000
Support levels: 0.9650, 0.9500
On the 7th of May, the market extremely went bearish, as indicated by the Moving Average Convergence Divergence (MACD) indicator. Due to the extremely low value of the EURO against the Swiss Franc, EURCHF bulls stormed the market and caused EURCHF to rally upward in fractals, as indicated by the Zig-Zag indicator. For a moment, the market’s environment looked bullish until the market reached its 3-month high.
Up till the 9th of June, 2022, the momentum and the speed of the upward rally gave an impression that the bulls would keep dominating the market. As the bulls kept dominating the market, the market formed a falling wedge, which indicated that the EURCHF bulls would be soon squeezed out of the market. The selling pressure due to this falling wedge pattern stirred the bears to storm the market and caused a shift in the market structure which crashed the market downward.
On the four-hour time frame, the market’s overall trend appears bearish. Currently, the volume of the EURCHF is extremely low as the MACD indicator shows that there are relatively few participants (or approximately equal numbers of bulls and bears) in the market.
The market seems to be correcting itself upward until it takes enough liquidity to continue its trend. As long as the swing high at 0.9700 is not broken by the EURCHF bulls, the market is expected to continue crashing downward.
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