EURCHF has shifted from a bearish trend to a bullish reversal, indicating a potential sustained upward move. This change is driven by a double-bottom pattern and recovery above key demand levels, signalling a change in market dynamics. Historically, the pair was in a persistent bearish trend, but failing to break 0.92740 led to a bullish reversal. Currently, the daily and 4-hour timeframes align to support a bullish outlook. Maintaining support above 0.94440 is crucial for sustaining the upward trend.
EURCHF Key Levels
Demand Levels: 0.95750, 0.97720, 0.99300
Supply Levels: 0.94440, 0.92740, 0.90880
EURCHF Long-Term Trend: Bullish
After reaching a key supply zone at 0.99300, the pair formed successive lower lows, breaching significant demand levels at 0.94440 and briefly below 0.92740. However, the failure to decisively break through 0.92740 led to the formation of a double bottom pattern, a classic bullish reversal signal.
Following this structural formation, price action has begun a recovery phase, reclaiming the 0.92740 level and moving upward toward 0.94440. The daily moving average currently trends close to the price without a strong directional bias, yet the fact that the price remains slightly above this indicator reinforces a bullish outlook.
EURCHF Short-Term Trend: Bullish
On the 4-hour timeframe, a bullish break of structure has confirmed recovery above the 0.94440 demand level, signalling continued bullish sentiment. The 4-hour moving average aligns with this trend, supporting an upward trend. However, the Relative Strength Index (RSI) is currently in the overbought region, suggesting that a temporary retracement could occur before further bullish continuation.
Given the alignment between the daily and 4-hour timeframes, the bullish reversal appears to be gaining strength. If the price maintains support above 0.94440, further upside movement could be expected, potentially targeting higher resistance zones.
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