EURCHF Analysis – Price Shows Signs of Change in the Market Trend
EURCHF shows signs of change in the market trend. As indicated by the Moving Averages Cross (MA Cross) on the daily chart, the current market’s order flow is bearish. The market remained in an oversold region for a very long time until late August, when the market began to recuperate from the selling pressure. The bears might exit the market soon with the 0.9470 price level currently being repulsive toward the downtrend.
EURCHF Significant Zones
Demand Zones: 0.9550, 0.9470
Supply Zones: 0.9650, 0.9750
As the market continued steadily to the downside, it did so by breaking the weak supports along its way. The market continued to break weak support until August 28th, when it broke a previous resistance. The breakout indicated a potential change in the market environment, but the EURCHF bulls were unable to form another higher high beyond the 0.98664 price level. On the 2nd of September, 2022, the market attained its local high. At the local high, it took the sell orders accumulated in a previous order block formed on the 25th of July, 2022.
As the price entered the order block, it absorbed the sell orders, breaking the market structure and crashing massively downward. On the 7th of September, 2022, a propulsion block was formed. The propulsion block was validated as it failed to break beyond the mean threshold of the previous order block. Due to the formation of the propulsion block, EURCHF bears further stormed the market and drove prices lower.
The current market range is between the swing high at 0.9866 and the swing low at 0.9464. The market has already taken the buy side liquidity above the old high at 0.9684 on the four-hour chart as it surged up into the 61.8% retracement level. A bounce is currently expected in the discount zone (below 50% retracement level) to confirm the change in the market environment to the upside.
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