EURCHF Begins Upward Correction as The Market Becomes Oversold

EURCHF Analysis – December 12

EURCHF begins an upward correction as the market becomes oversold, according to the indication of the Stochastic Oscillator. The market is clearly characterized by a systematic pattern as prices keep experiencing BOS (Break Of Structures) to the downside. The market is currently heading into the premium zone, after which another Break of Structure is imminent.

EURCHF Key Levels

Demand Zones: 0.94050, 0.93000
Supply Zones: 0.96800, 1.00900

EURCHF Long-Term Trend: Bearish

The overall downtrend of the market has been since the retraction at the 1.00900 supply zone. The price fell from the premium zone as more bulls withdrew from the market. This led to an en masse inflow of sell orders, typically depreciating the value of EURCHF. Following the structural shift, EURCHF declined further to the 0.97050 price level. The swing low formed at 0.97050 eventually got invalidated in the last week of May 2023.

The invalidation caused a Break of Structure, thereby strengthening the disposition of the sellers. The price retraced for a short while before invalidating a swing low at 0.96700. The swing low formed one week after the invalidation of the 0.97050 low in May 2023. EURCHF experienced a notable correction to the upside in September 2023. However, the bearish trend resumed as prices bounced off the 0.96800 supply zone. Following the completion of the ongoing upward correction, the market is likely to resume its downtrend.

EURCHF Short-Term Trend: Bullish

The market’s trading range is currently between the 0.96800 and 0.94050 supply and demand zones, respectively. Following the invalidation of the triple bottom on the four-hour chart,  the price crashed massively to the downside. However, the reaction of the market towards the 0.94050 has set the price upward, according to the MA Cross.

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