EURCHF Shows Signs of a Change of Character to the Upside

EURCHF Analysis – Market Shows Signs of a Change of Character to the Upside

EURCHF shows signs of a change of character to the upside. Amidst the fractal movements of the market to the downside, The bulls were able to instigate an appreciation of prices. The current trend of the market is now bullish, which is attracting more bulls to find an entry at every possible array.

EURCHF Significant Zones

Demand Zones: 0.9650, 0.9400
Supply Zones: 1.0090, 1.0520

Just before the change of character to the upside, the EURCHF sellers had been totally in control of the market. From the reaction of the price at the 1.0520 supply zone, the price could be seen falling drastically to the downside, breaking supports and squeezing the bears out of the market. Following a fake-out at the 1.0520 supply zone, EURCHF attained its local high on the 10th of February, 2022, and headed downward after. The massive crash from this point brought prices toward the 1.0090 price level.

The rebuff at this level attracted the bulls back into the market, hoping for a nice rally beyond the 1.0520 supply zone. An ascending trendline emerged after a second bounce off the 1.0090 price level. This trendline was initially used by the bulls to ride the market upward until a breakout flipped the market into the hands of the bears. The selling pressure at the 1.0520 supply zone seemingly suppressed the buying power of the bulls as EURCHF retraced downward, only to never come back to the supply zone again after the second retest.

Market Expectation

The ascending channel on the four-hour chart just got broken. EURCHF appears to be heading into the daily liquidity void and a bullish order block. Having experienced the break of structure that led to the change of character (CHOCH), the uptrend is expected to continue until the 1.0090 supply zone gets broken.

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