EURCHF Enters a New Accumulation Phase

Market Analysis – February 28

The EURCHF currency pair appears to have concluded its bearish phase as the market structure no longer exhibits the formation of consecutive lower lows. A notable change of character (ChoCh) suggests a potential shift in momentum, indicating the early stages of an emerging upward trend.

EURCHF Key Technical Levels

• Demand Zones: 0.93750, 0.93310
• Supply Zones: 0.94730, 0.96670

EURCHF Long-Term Trend: Ranging

The price briefly consolidated below the critical resistance level of 0.98110 before experiencing an upthrust that swept liquidity and triggered an aggressive bearish reversal. The market then retraced into the premium zone of the bearish range, giving sellers more opportunities to short. As a result, the price plunged sharply to test the key support level at 0.93310.

A closer look at the daily chart shows a wick rejection below 0.93310, indicating that the market strongly rejected lower prices. After this rejection, the price consolidated before forming a spring, which swept the previous low and quickly reversed upward. This price action highlights strong demand pressure, potentially marking the beginning of an accumulation phase.

EURCHF Short-Term Trend: Ranging

On the lower timeframes, EUR/CHF has started forming higher lows, following the appearance of a spring just below the 0.93310 support level. This has resulted in the formation of a weak bullish trend, with prices gradually advancing. However, the rally was temporarily halted by a double top formation at 0.94730, indicating strong resistance at this level.

To confirm a definitive shift towards an uptrend, a bullish break of structure (BoS) is required. This breakout would validate the transition from the current expanding range to a sustained bullish market structure, potentially targeting higher resistance levels.