EURCHF Analysis – Sellers Resume the Market Trend to the Downside
EURCHF sellers resume the market trend to the downside after the price reached the 0.9880 supply zone. On the daily time frame, the market has been declining rapidly ever since the change in the environment in June. The MA Cross indicator further confirmed this downtrend as it fell on the 21st of June, 2022. On the 13th of April, 2022, the fair value gap formed as the 0.9970 previous support rejected price to the upside was used as a re-entry level for the bulls as they drove the market into the year’s high.
EURCHF Significant Zones
Demand Zones: 0.9680, 0.9550
Supply Zones: 0.9880, 0.9970
The third month of the year allowed the EURCHF buyers to take control of the market as the bears decided to close their profits towards the previous support at 0.9970. At one bounce from the support, the market rallied upward in fractals, retracing at every resistance level before breaking them upward into the year’s high. The Marubozu bearish candlestick formed in June indicated the displacement in volatility as the EURCHF sellers drove the bulls out of the market.
From the year’s high, the market kept crashing and forming lower and lower highs. The market remained in an oversold region for a relatively long period as the EURCHF sellers refused to leave the market until a change in the market’s environment on the 23rd of August, 2022. The bulls took over the market at the 0.9550 support and drove prices into a shift in market structure to the upside. The liquidities above the daily highs on the 19th of July and the 5th of August might be swept out if the bears failed to break the 0.9680 demand zone to the downside.
The bearish divergence that formed on the 2nd of September, 2022, led EURCHF into a downtrend in the four-hour time frame. The liquidity above the month’s high at 0.97870 is expected to be swept off to enable increased momentum for a further decline in price by the sellers.
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