EURCHF Bearish Breakout Confirms Reversal

Market Analysis – July 11

EURCHF has recently undergone a significant bearish breakout, confirming the presence of a double-top pattern. The neckline of the chart pattern has been breached, signaling a shift in market sentiment from bullish to bearish.

Previously, there was hope for a bullish reversal, but the upward momentum was short-lived as bearish forces regained control. This break below the neckline shows a stronger bearish bias in the market.

Key Levels For EURCHF:

Demand Levels: 0.9680, 0.9740, 0.9640
Supply Levels: 0.9820, 0.9860, 0.9900

Long-Term Trend For EURCHF: Bearish

Technical indicators further support the downward direction. The Moving Averages, specifically the nine and twenty-one periods, have crossed above the daily candles, revealing a shift toward a bearish sentiment.

Moreover, the MACD (Moving Average Convergence Divergence) has crossed above the Zero mark, providing a clear indication of a selloff in progress. The decisive downward movement, marked by an impulsive expansion, has revealed the dominant direction of the market. The price is now driving towards the demand level of 0.9700, serving as the next significant target for bearish traders.

EURCHF Short-Term Trend: Bearish

In summary, the market experienced a bearish breakout, confirming the presence of a double-top pattern. The breach of the neckline indicates a shift in market sentiment to the downside. Technical indicators, including the Moving Averages and the MACD, further support the bearish outlook. As the price continues its downward movement, the next target for bearish traders lies at the demand level of 0.9700.

Do you want to take your trading to the next level? Join the best platform for that here