EURCHF Bearish Trend Restarts After Significant Retreat Into The Premium Zone

EURCHF Analysis – January 29

EURCHF restarts its bearish trend after a significant retreat into the premium zone. Despite what appears to be a definitive rally into the premium zone, the general direction of the market is negative. Since the retest at the resistance of $0.95450, the price has twice bounced off a declining trendline. EURCHF may make a third bounce off the emerging trendline in the direction of the overall market trend.

EURCHF Key Levels

Demand Zones: 0.92540, 0.91820
Supply Zones: 0.95450, 0.96940

EURCHF Long-Term Trend: Bearish

A downside breakout unfolded when major support levels succumbed to a massive crash from the premium zone. EURCHF encountered prolonged difficulty at the 0.95450 mark in sustaining the downside breakout; however, bears eventually yielded to bulls. The resulting upward surge triggered stop-losses for more sellers. This strengthened the buying momentum until the price entered the premium zone.

Eventually, the budding uptrend was abruptly curtailed as bears resurged vigorously, establishing a substantial high at 0.96850 and reinstating the bearish trend. The prevailing order flow of EURCHF persists in a bearish direction. This is clearly marked by the consistent downside breaks in the market’s structure. The existing trading range spans from 0.95450 to 0.92540 price levels. Upon breaching the premium zone, the Stochastic Oscillator highlighted an overbought condition, which is excellent for the best forex signals to return to the overarching bearish market trend.

EURCHF Short-Term Trend: Bearish

Following the four-hour high’s invalidation at 0.94480, the price quickly expanded into the premium zone’s breaker block. The Simple Moving Average, or SMA, indicates that the market is now moving in a negative trend. The market is predicted to continue plunging until the major low of 0.92540 is no longer valid.

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