EURCHF Experiences a Prolonged Downtrend

Market Analysis – September 29

EURCHF experiences a prolonged downtrend as the bears continue to rule. The bearish break in the structure confirmed the continuation of the downtrend in early July 2022. Since then, the price has been steadily falling without any significant pauses. It finds support at the 0.94000 level.

EURCHF Key Levels

Demand Levels: 0.98600, 0.94000, 0.92000
Supply Levels: 1.00500, 1.02800, 1.05100

EURCHF Long-Term Trend: Bearish

EURCHF remains bearish because of its inability to surpass the 1.05100 supply level. Also, the bearish breach of the structure indicates the ongoing bearish sentiment. This is despite a temporary rise after reaching a low of 0.94000.  The failure of the price to break beyond the 0.94000 level suggests that the liquidity to support bearish sentiment has not been provided.

The price started rising immediately after the main low was formed around 0.94000. This erased the previous highs as a sign of market liquidity. However, the price was unable to surpass the 1.00500 level. This indicates that the necessary steps to provide liquidity have been taken.

A strong confluence of factors supports a bearish bias. This includes price rejection from the 1.00500 level and the bearish shift in structure. It is projected that the price will cross the 0.96800 level. It might extend the bearish trend by breaking the 0.94000 barrier.

EURCHF Short-Term Trend: Bearish

EURCHF remains bearish, with the price breaking the 0.96800 demand level and indicating active bearish momentum. However, from the bullish signal from the Moving Average, there may be a price retracement phase leading up to the order block.

 

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