EURCHF Resumes the Market’s Uptrend Into Premium

EURCHF Analysis – The Market Resumes Its Uptrend Into Premium Territory

EURCHF resumes the market’s uptrend into premium after hitting the daily fair value gap at discount. On the daily chart, the market has been in an upward trend since late September this year. The bulls have since been algorithmically controlling the market.

EURCHF Significant Zones

Demand Zones: 0.46930, 0.94030
Supply Zones: 0.99550, 1.05140

While the bulls appear to be in total control of the market, the bears seem to be waiting patiently for the price to surge into the premium. Interestingly, the EURCHF felt a great downcast immediately after hitting the 0.99550 supply zone on October 26, 2022. On this same day, the trendline was also retested. This reaction of price towards this confluence of a premium array, 50% retracement, and resistance indicates the presence of intimidating selling pressure at the premium. By the way, the bears were completely in control of the market until recently, when the trendline was broken to the downside in September 2022. This downtrend began on June 9, 2022, after forming a double top.

The neckline of the double top was not just broken; EURCHF aggressively crashed through it into an oversold region in a few weeks. The current trading range of EURCHF is defined by the 1.05140 and 0.94030 price levels. On August 24, 2022, the price created a low that was later invalidated for a lower low to be formed. This lower low was created in September 2022; the lower low currently serves as the long-term low of the market. As the price continued to seek higher highs and higher lows from the local low, it left a fair value gap that was later filled some days ago.

Market Expectation

After being rejected at the daily fair value gap, the price faced upward on the four-hour chart. While the market’s direction bias is still upward, EURCHF might first retrace into the four-hour order block or return into the daily bullish order block.

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