EURCHF Pulls Back to Bearish Order Block

EURCHF has pulled back to a bearish order block after a 4.57% price decline since the market reversed in late May. The price dropped to 0.9480, where the Stochastic indicator showed the market was oversold. Consequently, a bullish retracement is now drawing the price towards the bearish order block at 0.9650.

EURCHF Key Levels:

• Demand Levels: 0.9480, 0.9400, 0.9310
• Supply Levels: 0.9720, 0.9930, 1.0040

EURCHF Long-term Trend: Bullish

The market is currently experiencing its second major price wave this year. The first significant wave was bullish, beginning in January when the market saw a steady uptrend. This bullish trend continued until late April, setting the stage for the next major movement.

In late May, the second major price wave started. At the beginning of this downtrend, the Lorentizan Classification machine learning indicator signalled a sell. Simultaneously, the Stochastic indicator showed the market was oversold, reinforcing the sell signal. Subsequently, multiple forex signals for shorting were established after the price declined below the low of 0.9730, confirming the downtrend’s strength.

EURCHF Short-term Trend: Bullish

Currently, the price is retracing towards a bearish order block on the daily chart. This retracement on the daily chart appears as a bullish market structure on the 4-hour charts. As the price tests the order block, it is expected to provide entry points for the best forex signals to short the market during the strong downward move. Traders looking to increase their risk-to-reward ratios should seek a bearish shift in market structure (SMS) on lower time frames for optimal entry points. This strategy will allow them to capitalize on the anticipated downward movement with better precision and reduced risk.

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