EURCHF Bullish Structure Continues to Evolve

Market Analysis – January 2

EURCHF has progressively signaled a shift in market direction, with a structural change evident on the daily chart. A breakout above a key resistance trendline has paved the way for a potential sustained uptrend.

EURCHF Key Levels

Demand Levels: 0.93390, 0.92770, 0.92080
Supply Levels: 0.94500, 0.95810, 0.96820

EURCHF Long-term Trend: Bullish

EURCHF has transitioned from a dominant bearish trend to a bullish structure. Previously, the pair consistently formed lower highs, underscoring sellers’ control. However, December marked a pivotal moment, as the market made a decisive push above the last swing high, signaling a reversal.

This shift is supported by the MACD (Moving Average Convergence Divergence), which has begun to print green histogram bars, indicating strengthening bullish momentum. This momentum aligns with the breakout above the resistance trendline. Following this breakout, the price retraced to test a bullish order block in December. This retest created a failed low, triggering a sharp rally above the resistance zone, solidifying the bullish narrative.

EURCHF Short-term Trend: Bullish

On lower timeframes, EURCHF maintains a bullish outlook. The price recently tested the 0.94440 resistance level, a move that could prompt a short-term dip or retracement. However, the overall trend remains upward, with the price expected to target the next resistance level at 0.95810.

This bullish structure suggests further upside potential, with retracements likely to offer traders opportunities to join the uptrend as the market advances.

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