EURCHF Lurks in Oversold Region

Market Analysis – April 18

EURCHF staged a deceptive bullish surge before crashing sharply. The pair has now plunged into the 0.9250 demand zone, where the market remains deeply oversold.

EURCHF Key Levels

Supply Levels: 0.9600, 0.9770, 0.9930
Demand Levels: 0.9250, 0.9000, 0.8800

EURCHF Long-Term Trend: Bullish

Over the past year, EURCHF has tested the 0.9250 demand zone four times without a clean breakdown. Each test failed to breach the support decisively, highlighting strong buying interest at this level.

Recently, the price surged above the 0.9600 supply zone in a sharp but unsustainable move. The Williams Percent Range signalled extreme overbought conditions during the spike. Momentum quickly shifted as sellers took control, triggering a steep decline.

Above the 0.9600 swing high, a head and shoulders pattern materialised. Shortly after, the price broke below the Lorentzian Classification Indicator string, confirming a bearish reversal. The machine learning-based indicator also flashed a red tag, reinforcing a sell signal across the board. In response, EURCHF drilled down toward 0.9250 once again.

EURCHF Short-Term Trend: Bearish

For now, the price dip has paused at the familiar 0.9250 support. The 4-hour chart shows candles shrinking and tightening into a consolidation phase. Market energy is compressing, suggesting a wild expansion is imminent. A decisive breakout or breakdown will likely define the next major move.