EURCHF has reversed direction after encountering the resistance of a parallel channel, signaling a continuation of its bearish momentum. Following a period of retracement on the daily chart, the market appears ready to resume its downward trajectory.
A bearish trendline connecting two significant swing highs from May and June has played a crucial role in the current price movement. This trendline, extended into the future, highlighted the next region for price reversal. Upon testing this trendline, the Stochastic indicator revealed overbought conditions, aligning with the anticipated price drop. The overbought signal suggests that the retracement phase has ended, and the EURCHF is likely to continue declining.
Additionally, the 9-period Simple Moving Average (SMA) has crossed above the daily candles, confirming the downward momentum. The price has shown sensitivity to the resistance trendline, further validating the continuation of the bearish trend within the parallel channel.
EURCHF Short-term Trend: Bearish
In the 4-hour timeframe, the market has exhibited a clear bearish structure with three consecutive lower peaks. This pattern indicates growing selling pressure, with the price now heading towards the swing low of 0.93070. This level serves as a potential target of forex signals for traders anticipating further downside. With bearish momentum in play, EURCHF may continue to test lower support zones in the coming sessions.
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EURCHF Short-term Trend: Bearish
EURCHF Short-term Trend: Bearish
