EURCHF Price Slums in Parallel Channel
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EURCHF Price Slums in Parallel Channel

Estimated Reading Time: 2 minutes

Azeez Mustapha

Updated:

Market Analysis – June 6

EURCHF is experiencing a downward trend, characterized by a bearish parallel channel, which has influenced its price action. The upper boundary of the channel, serving as a resistance level, has been tested, leading to increased short positions during this trading week.

EURCHF Key Levels

Demand Levels: 0.9640, 0.9550 0.9480
Supply Levels: 0.9780, 0.9890, 1.0050

EURCHF Price Slums in Parallel Channel

EURCHF Long-term Trend: Bearish

At the beginning of March, EURCHF exhibited a bearish movement, starting from the supply level of 1.0050 and reaching 0.9700. The market retraced within the upper range of the bearish swing, where a double-top bearish reversal pattern signaled the initiation of a gradual downward trend. The Stochastic indicator confirmed the start of the downward trend by becoming overbought during the formation of the double-top pattern.

The downward price movement has been effectively contained within the boundaries of the parallel channel. The resistance trendline, positioned above the daily candles, has been tested. The Stochastic indicator also suggests a readiness to resume the downward momentum. Currently, the price is declining towards the supporting trendline.

EURCHF Price Slums in Parallel Channel

EURCHF Short-term Trend: Bearish

On a lower timeframe, a double top pattern has emerged at the resistance boundary, further confirming a potential sell-off. The price is currently rapidly approaching the level of 0.9640. As the Stochastic indicator indicates oversold conditions, a pullback to the bearish order blocks is expected to reinforce the ongoing downward movement.

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