EURCHF Falls from Volume Imbalance

Market Analysis – November 27

EURCHF broke below the key support level at 0.93390, confirming its bearish trajectory. After the breakout, the price briefly retraced upward, filling a volume imbalance at 0.93480. This retracement, positioned just above the previous support, was short-lived. The bearish momentum swiftly resumed, and the price began its downward slide once again.

EURCHF Key Levels

• Demand Levels: 0.93340, 0.92110, 0.91000
• Supply Levels: 0.94520, 0.95660, 0.96430

EURCHF Long-Term Trend: Bearish

The long-term trend remains firmly bearish. The breakout below 0.93390 led the price to a swing low at 0.92080, where a prominent bullish hammer candle appeared. This pattern signaled a temporary rejection of lower prices but failed to reverse the broader trend.

Above the broken support level, a volume imbalance at 0.93480 indicated inefficiency in the market structure. This imbalance, formed by overlapping wicks without a candlestick body, often invites price retracement to restore equilibrium. EURCHF quickly filled this imbalance before resuming its descent.

EURCHF Short-Term Trend: Bearish

The short-term bearish trend aligns with the broader outlook. After retracing to the volume imbalance, the price resumed its fall. EURCHF is now targeting the next swing low at 0.9280, with bearish pressure intensifying. The pair shows no signs of reversing its bearish trend. Both long-term and short-term structures suggest further declines as EURCHF moves toward deeper demand levels, barring any unforeseen market catalysts.