Market Analysis – February 23
EURCHF has turned bearish with the formation of a double top. The market has broken the ascending wedge on the daily timeframe.
EURCHF Key Levels
Resistance Levels: 1.0150, 1.0060, 0.9910
Support Levels: 0.9820, 0.9640, 0.9430
EURCHF Long-term Trend: Bearish
EURCHF initiated the bullish ascent with the aid of three white soldiers. The price experienced a surge after the Stochastic indicated the market was oversold in September last year. The shooting of the three large bullish candles created a bullish structural shift. The magnitude of the bullish takeoff did not give room for a perfect retracement to fill up a fair value gap (FVG) above the bullish order block.
A second price surge on the new bullish trend was experienced in October. The market soared above 0.9910 in a single impulsive delivery. The Stochastic indicated the market was overbought. The Parabolic SAR (Stop and Reverse) immediately formed points above the daily candles to signal a retracement. The market traded efficiently, filling up every gap above the bullish order block. A consolidation phase followed. The market created a range between a 0.9910 supply level and a 0.9820 demand level.
EURCHF Short-term Trend: Ranging
The bullish trend-line supporting the price rise has failed to hold. The price has declined below 0.9910. A daily bearish order block lies right above the range formed on the 4-hour chart. The Stochastic is currently oversold. This is expected to foster the mitigation of the bearish order block and create a downward displacement.
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