EUR/CHF Bears Take Control After Resistance Rejection

EUR/CHF Price Analysis – September 9th

EUR/CHF pair has shifted to a bearish outlook after a decisive rejection from a key resistance zone. Sellers have taken firm control, initiating a downtrend that is confirmed by significant technical indicators. The current price action suggests that the path of least resistance is to the downside as bears target lower support structures.

EUR/CHF Key Levels

Support Levels: 0.9307, 0.9250
Resistance Levels: 0.9342, 0.9445

EUR/CHF Long-Term Trend: Bearish (Daily Chart)

On the daily chart, the EUR/CHF price failed to overcome the formidable resistance at the 0.9445 level in late August. This failure triggered a sharp reversal, placing sellers firmly in the driver’s seat. A significant bearish signal has since appeared: the 9-period MA has crossed below the 21-period MA. This bearish crossover indicates that short-term momentum has turned negative and often precedes a sustained move lower.

The price is now trading below both moving averages, confirming the downtrend. This bearish sentiment is further validated by the Money Flow Index (MFI), which has fallen to 41.50. A reading below 50 shows that selling pressure is outweighing buying pressure, supporting the case for a continued descent towards the 0.9307 support level.

EUR/CHF Short-Term Trend: Bearish (4-Hour Chart)

The 4-hour chart clearly illustrates the aggressive nature of the recent sell-off. The price is locked in a steep downtrend, trading well below the 9 and 21-period moving averages, which are pointing downwards and acting as dynamic resistance. The bearish MA crossover on this timeframe provided an early signal for the sharp decline.

The Money Flow Index (MFI) has plunged to an extremely low reading of 16.04. This indicates the market is in oversold territory in the short term, which could lead to a minor bounce or consolidation as sellers take profits. However, the overarching trend remains decisively bearish. Any corrective rally is likely to be met with renewed selling pressure, with the immediate focus remaining on breaking the 0.9307 support.

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