EURCHF Begins Its Bullish Retracement

Market Analysis – December 26

EURCHF begins its bullish retracement as the price makes a BOS immediately after breaching the 0.94050 level. Apparently, the price is heading into the premium zone. This is likely to lead to a notable correction phase, as the downward trend resuming anytime soon is unlikely. According to the Stochastic Oscillator, the price is typically oversold. This reinforced the buying pressure as the sellers awaited a re-entry.

EURCHF Key Levels

Demand Zones: 0.940500, 0.926000
Supply Zones: 0.969000, 0.984000

EURCHF Long-Term Trend: Bearish

EURCHF retested the 0.969000 price level in June 2023. This led to an upsurge into the supply zone of 0.98400. Owing to the overwhelming selling pressure in the supply zone, the market made a reversal to the downside. As confirmed by the MA Cross, the reversal emerged with intense momentum as the price broke previous support levels. Following the major crash from the 0.98400 supply zone, EURCHF made a notable retracement until it hit the 0.969000 resistance.

From the 0.969000 price level, the market experienced a rapid fall until it reached 0.94200. The Stochastic Oscillator showed that the market was oversold. This caused a massive rally back to the 0.96900 resistance. Apparently, the market has been between the 0.96900 resistance and the 0.94050 support since July 7, 2023. A successful breakout below the 0.94050 price level is likely to lead to a continuous decline deep into the discount zone. The market is currently in a correction phase, which might continue for a relatively long period.

EURCHF Short-Term Trend: Bullish

EURCHF headed downward for a break of structure at 0.94030. This made the price become oversold, as revealed by the Stochastic Oscillator. Owing to the overwhelming buying pressure from the discount zone, the market seems to be heading upward for a long-term retracement.

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