EURCHF Experiences a Bullish Reversal

The EURCHF currency pair experienced a significant bearish break of structure in early June 2024, triggering a substantial decline. This downward movement persisted until the price breached the 0.93830 demand level, marking a critical point in the pair’s price action.

Demand Levels: 0.94410, 0.92130

Supply Levels: 0.95770, 0.97580

Despite the bearish momentum earlier in the year, the long-term trend remains bullish. Following the breach of the 0.93830 level, the pair declined further toward 0.92400 in early August 2024. This level acted as strong support, facilitating the first notable bullish rebound. However, the bullish rally was short-lived as the price failed to surpass the 0.95860 resistance level, leading to a reversal back into a bearish trend.

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By mid-November 2024, the price revisited the 0.92400 support level, forming a double-bottom pattern—a classic bullish reversal signal. This formation led to a bullish break of structure, reinforcing the current upward trend. The daily moving average further supports this bullish outlook, as the price currently trades above the indicator, signaling a continuation of the bullish momentum in the long term.

In the short term, the trend reflects a bearish retracement within the broader bullish framework. The 4-hour Relative Strength Index (RSI) indicates overbought conditions, suggesting the possibility of a corrective move. This retracement is expected to take out liquidity below the current price, potentially triggering the daily order block for further bullish momentum.

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The daily RSI is also in the overbought region, implying that the anticipated bearish retracement could be more pronounced. However, the major Forex signal is bullish.