EURCHF has demonstrated a significant shift in momentum, reversing its prolonged bearish trend at the 0.92580 demand level. This key support zone has facilitated a bullish recovery, suggesting renewed strength in the currency pair.
Since reaching the 0.98650 level, EURCHF has experienced a sustained bearish phase, marked by a series of lower highs and lower lows. The downtrend intensified as the pair breached the critical 0.94680 demand level in early August 2024, establishing a significant low. Subsequent attempts to reclaim this level faced resistance, reinforcing its importance.
Recently, however, price action has successfully recovered above this threshold, forming a notable inverse head and shoulders pattern—a classical bullish reversal signal. Further confirmation of this potential uptrend comes from the daily Moving Average, which now indicates a shift in sentiment, with price positioning below the indicator, reinforcing bullish bias.
EURCHF Short-Term Trend: Bullish
On the 4-hour timeframe, bullish momentum is evident, as the formation of strong bullish candlesticks suggests heightened buying interest. However, the Relative Strength Index (RSI) indicates that the pair has reached the overbought region, increasing the probability of a short-term pullback.
This anticipated retracement is likely to be a liquidity grab, allowing price action to reset before targeting the next significant level. It is advised to monitor how EURCHF interacts with the daily order block, as this zone could provide further validation for a sustained bullish trend.
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