EURCHF Analysis-price makes signs of change in the market trend
EURCHF shows signs of change in the market trend. The EURCHF has been quite diplomatic this year as it provides opportunities for both buyers and sellers at times apart. With the current change of character on the daily chart, the market appears to be running toward the year’s high.
EURCHF Major Zones
Demand Zones: 0.9650, 0.9400
Supply Zones: 0.9970, 1.0220
The liquidity below the low formed on the 5th of January, 2022, was used to rally the price into the year’s high. The year’s high was reached in February 2022 at 1.06116. The EURCHF buyers could not continue beyond this point because the market was already overbought. From this overbought region, prices began to descend until the 0.9970 price level was reached. As usual, EURCHF gave the bulls the opportunity to drive prices upward but without exceeding the year’s high. As the price rallied up toward the year’s high, it did so along a rising trendline.
The trendline was used to ride price into a daily bearish order block. This bearish order block emerged on February 4, 2022. The bearish order block eventually rebuffed the market to the downside, but not massively until the second retest. At the second retest, the bears raided the market and broke the previous support at 1.0220 in one blow. On the 27th of June, the market continued its bearish moves in a descending channel. This descending channel was invalidated on the 29th of August, 2022.
Market Expectation
The market has been bullish on the four-hour chart since the 0.9400 demand zone was reached. Due to the indication of the bullish divergence on the daily chart, EURCHF is likely to continue heading toward the 0.9970 supply zone. This is expected to happen after a bounce off the daily bullish order block.
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