EURCHF bulls continue to counter declines from the key resistance trendline, with prices adhering closely to this line since early October, leading to the formation of a narrow range.
EURCHF has been navigating a descending parallel channel, where the lower highs and lows connect within this bearish structure, forming a parallel channel. The pair’s third test of the channel’s upper boundary was anticipated to trigger a substantial selloff; however, price action has consolidated along the trendline. This suggests potential indecision in the market, despite an underlying bearish bias.
Momentum indicators reflect steady but moderate bearish pressure without significant downside acceleration. The Smoothed Heikin Ashi candles, which lie atop the daily candles, further highlight a subdued price movement, underscoring the prevailing stiffness in momentum.
EURCHF Short-term Trend: Bearish
EURCHF’s adherence to the resistance trendline suggests a possible breakout in the short term. On the 4-hour chart, a gradual increase in momentum towards the trendline’s edge strengthens the potential for a breakout. Should this occur, a successful retest of the trendline could confirm the breakout and yield favourable entry points for bearish trades, offering high-probability forex signals for traders monitoring this pair closely.
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EURCHF Short-term Trend: Bearish
