EURCHF Analysis – Price Flows in a Downward Direction
EURCHF flips bullish as it heads into the premium zone. The EURCHF bears had successfully shown their dominance in the market as they purged prices down across the crests. With supports getting cleared and the bulls getting squeezed out, EURCHF remained a no-bull market until the 0.94030 demand zone was hit.
EURCHF Significant Zones
Demand Zones: 0.96430, 0.94130
Supply Zones: 0.99720, 1.05140
Just before the 0.94030 demand zone was hit, the bears took the market on an intriguing journey that lasted for weeks. This began after the bulls completely gave up the market to the bears in June 2022, after the price retested 1.05140 in the premium zone. Though the market’s order flow has always been bearish, this wave appears to be the most aggressive and impulsive of the year. On the 17th of September 2021, EURCHF rallied down to break the old low aggressively into the year 2022. As the market crossed the 1.05140 price level to the downside, the level held the price downward.
The 1.05140 price level was breached on February 4, 2022, but only as a fake-out to induce liquidity. The EURCHF continued its babalaas between the 0.99720 and 1.05140 price levels until the 5th of July, 2022. The last impulse swing for the bears began after the price returned to a bearish order block on the 2nd of September, 2022. The low at the 0.94030 demand zone is the long-term low; this low should not be breached anytime soon. Should the mid-term low at the 0.96430 demand zone also remain valid, the price might keep rallying upward into the premium zone.
The market’s order flow on the four-hour chart is bullish. Before EURCHF continues rallying upward, a retracement into the daily order block and the discount zone is expected.
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