EURCHF Confronts the Intersection of Short-term Uptrend and Long-term Downtrend

Market Analysis – June 27

The EURCHF currency pair has experienced a rise in price, driven by bullish price action observed on the lower time frame (4-hour chart), which has formed within a bullish channel. This upward movement has led to the upper boundary of the bearish channel on the 24-hour chart, indicating a potential market reversal influenced by the prevailing bearish wave on the higher time frame.

Key levels for EURCHF

Demand Levels: 0.9680, 0.9600, 0.9500
Supply Levels: 0.9840, 0.9990, 1.0090

EURCHF Long-term Trend: Bearish

In the long-term trend, the market has displayed a bullish trajectory. The current downward movement can be attributed to the testing of the bearish order block at 1.0090 on the monthly time frame. The price action has been notably shaped by a parallel channel, with the resistance trendline effectively impeding short-term ascents.

Presently, the Relative Strength Index (RSI) indicates an overbought market condition, while the Parabolic SAR (Stop and Reverse) indicator reveals the potential for upcoming price descent, signaled by the appearance of double dots above the daily candles.

EURCHF Short-term Trend: Bearish

In the short-term trend, a bearish shift in market structure has emerged, independent of the lower timeframe parallel channel. This suggests a likely bearish breakout as resistance levels have been reached in the higher time frame. Consequently, the price is anticipated to decline toward the level of 0.9670.

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