EURCHF Seeks Buy Orders in the Discount Zone

EURCHF Analysis – Market Seeks Buy Orders in the Discount Zone

EURCHF seeks buy orders at the discount zone. The Bollinger Bands indicator currently reveals the market’s environment as being bullish. After the price hit the 0.99720 resistance, the bulls’ buying pressure seems to be subduing the bears’ as the price finds it difficult to crash massively downward.

EURCHF Significant Zones

Demand Zones: 0.96430, 0.94030
Supply Zones: 0.99720, 1.05140

The market’s order flow has been quite systematic. EURCHF could be seen reacting to significant levels, premium zones, and discount zones. Since the market just hit the 0.99720 resistance after grabbing sell-side liquidity at the previous high of 0.98660, the price had to correct downward. Algorithmically, the price seems to be heading into the mitigation block defined by the 0.97970 price level. On the fifth trading day of March 2022, a trendline began to rise upward; this trendline was used by the bulls to surge the price into a double top.

 After the third bounce off the trendline, EURCHF ran through the liquidity below the trendline and crashed massively to the downside. During the phase of the massive crash, a bearish order block was created in July 2022. The bears accumulated selling orders in this zone in preparation for a re-entry in September 2022.Due to this bearish order block, the whole of September 2022 was bearish. As the price breached the lower band of the Bollinger Bands, it hit the 0.94030 support and surged rapidly to the upside. Ever since then, the market’s order flow has been bullish on the daily time frame.

Market Expectation

The 0.96430 and 0.99550 price levels define the current trading range of EURCHF in the four-hour time frame. After the failure swing and the market structure shift, EURCHF flipped bearish as the market now heads into the discount zone. The market’s direction is expected to be bullish again when the price hits either the 61.80% or the 78.60% retracement levels.

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