EURCHF Experiences a Market Structure Shift

Market Analysis – Price Hits 0.98480 Major Resistance

EURCHF experiences a market structure shift to the downside after hitting the 0.98480 major resistance. Before the recent market structure shift, the market was bullish owing to the reversal at the 0.92540 support. The trading range of the market currently lies between a 0.93060 swing low and a 0.98480 swing high.

EURCHF Market Levels

Resistance Levels: 0.98480, 1.00970
Support Levels: 0.95450, 0.92540

EURCHF was consolidating at the beginning of the last quarter of the year 2023, owing to the interest of the bulls and the bears in dominating the market. Until mid-November 2023, EURCHF struggled to break beyond the 0.95450 price level. The tug-of-war between the bulls and the bears ended with a massive crash at the 0.95450 price level. In favor of the bears, the price crashed lower, forming lower lows and lower highs. As the year 2024 began, the bears exited the market, thereby leading to the end of the exuberant downtrend. 
 
At 0.92540, the price experienced a short-term consolidation before a pullback to the upside occurred. A swing high and a bullish order block formed, respectively, at the 0.94730 and 0.93060 price levels. Following the bounce off the bullish order block, prices headed upward, leading to a market structure shift.

Currently, at the premium zone, the bullish momentum has decreased owing to the overwhelming selling pressure present. The FVG (Fair Value Gap) formed just below the 0.98000 price level is likely to trigger the continuation of the bearish trend.

Market Expectation 

The market structure on the four-hour chart is bearish. EURCHF is currently heading into the FVG (Fair Value Gap) in the premium zone. According to the premium’s FVG, the bearish trend is expected to resume.

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