EURCHF Price Rises into Mitigation Block at Equilibrium

Market Analysis –  July 10

EURCHF price has ascended into a bearish mitigation block on the daily chart, terminating at the mid-range of the last bearish displacement from 0.9930 to 0.9480. This bearish mitigation block is currently resisting the upward movement, as expected.

EURCHF Key Levels

• Demand Levels: 0.9600, 0.9440
• Supply Levels: 0.9880, 1.0040

EURCHF Long-Term Trend: Bullish

The price decline below the major swing low of 0.9730 marked a bearish shift in the market structure. Subsequently, the price continued to fall until it finally paused at 0.9500. At this level, the market was already oversold on the Stochastic indicator, leading to the subsequent price ascent.

Currently, this ascent is facing resistance at the major low of 0.9730, which is acting as a bearish mitigation block in the 24-hour timeframe. Consequently, this resistance has caused a pause in the price ascent leading to a descent pullback. Moreover, the stochastic indicator is showing an overbought market, adding to the resistance faced by the price.

EURCHF Short-Term Trend: Bullish

For the bullish trend to continue, the price action must create stronger lows to achieve new highs in the premium zone. To generate the best forex signals with the current price at equilibrium, it is crucial to monitor for an obvious change of character (ChoCh) for shorting opportunities.

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