EURCHF experienced a notable shift in trend following the formation of a significant high at the 0.99210 level in late May 2023. Initially, the bullish momentum dominated; however, a pronounced bearish reversal ensued, leading to a sustained decline. Throughout this bearish phase, price action exhibited strong downward movement with minimal retracements. The only significant bullish correction occurred in mid-July when the price briefly surged to retest the 0.97600 supply level before resuming its downward trajectory.
EURCHF Key Levels
Demand Levels: 0.94840, 0.93130, 0.92100
Supply Levels: 0.96030, 0.97600, 0.99210
EURCHF Long-Term Trend: Bullish
During the decline, the market breached key demand levels at 0.94840 and 0.93130, highlighting persistent selling pressure. However, a crucial support level of 0.92100 proved resilient. The price first tested this level in early August 2024 but failed to break lower, suggesting strong buying interest.
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Following the initial rejection at 0.92100, the price attempted another downward move but was once again unable to breach this key support in early November 2024. This formation signalled a potential trend reversal, coinciding with an increase in the Relative Strength Index (RSI) on the daily timeframe, indicating buyer’s interest at 0.92100. As a result, the market transitioned into an upward trend, reinforcing bullish forex signals.
EURCHF Short-Term Trend: Bullish
In the recent short-term price action has formed a reverse head and shoulders pattern, a classical bullish reversal structure. This pattern suggests that the market is building momentum for a continued upward move, targeting a break above the 0.94840 level. The immediate bullish objective is the 0.96030 supply zone, where prices may face resistance.
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While the current trend remains bullish, traders should exercise caution as the daily RSI has reached overbought territory. This condition suggests that a potential bearish retracement may occur in the near term. However, given the prevailing bullish structure, any pullback is expected to act as a corrective phase rather than a full-scale trend reversal.
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EURCHF Short-Term Trend: Bullish
EURCHF Short-Term Trend: Bullish
