EURCHF Abounds in Bearish Institutional Order Flow

Market Analysis – September 4

The EURCHF pair continues to exhibit strong bearish momentum as the market remains firmly entrenched in a downward trend. Following a brief pullback to the resistance zone at 0.95210, a pronounced bearish displacement ensued, signaling a resumption of the broader bearish trend. This price movement highlights the persistent selling pressure that has dominated the market in recent months.

EURCHF Key Levels

• Demand Levels: 0.93150, 0.92540, 0.91000
• Supply Levels: 0.95210, 0.97000, 0.98850

EURCHF Long-Term Trend: Bearish

In early August, the price decline, which had persisted for several weeks, paused as it approached the key demand zone at 0.93150. This level has proven to be a critical support area, as it also marked the end of a significant pullback in late January. The price subsequently retraced towards the bearish order block at 0.95210, indicating a temporary reversal in the market.

However, this retracement was met with strong resistance, notably from the 30-period Moving Average. The convergence of the bearish order block and the Moving Average created a formidable barrier, preventing further upward movement. As a result, a swing high formed, which triggered the continuation of the bearish trend. This pattern reinforces the dominance of sellers in the market and suggests that the downward momentum is likely to persist in the long term.

EURCHF Short-Term Trend: Bearish

In the short term, the EURCHF price is once again on a downward trajectory. The price is heading toward the demand level at 0.93150. A minor bullish pullback was observed on the 4-hour chart, which briefly lifted the price to a fair value gap at 0.94320. However, this upward movement was swiftly countered by resistance at the 50-period Moving Average, which effectively capped the rally and sent the price back on its bearish course.

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