EURCHF Resistance Zone Reveals Signs of Weakness

EURCHF has maintained a well-defined downtrend, moving through a bearish parallel channel. After testing the Bollinger Band support, the price ascended towards the resistance border but encountered a resistance zone. The price action at the zone has revealed signs of a bullish breakout..

Key Levels for EURCHF

• Demand Zones: 0.93070, 0.92110, 0.91000
• Supply Zones: 0.94520, 0.95660, 0.96430

EURCHF Long-Term Trend: Bearish

The pair remains in a bearish trend following a pullback to the order block at 0.95660, which set the stage for further downward movement. However, the price found temporary support at 0.93070, where the lower Bollinger Band acted as a key barrier, causing a pause in the decline. A subsequent retracement brought the price back to a newly formed bearish order block at 0.94520, after a swing low emerged near the lower Bollinger Band.

Despite the bearish order block at 0.95420 holding firm initially, the price has since bounced back from a counter-bullish order block at 0.94000, creating a bullish candle. This indicates potential weakness in the bearish momentum, with bulls potentially enforcing a reversal, which is a concerning sign for sellers.

EURCHF  Short-Term Trend: Bearish

On the 4-hour chart, the bearish order block at 0.95420 serves as a supply zone. However, a double bottom pattern has formed at this level, suggesting a possible price upthrust. This pattern signals a potential short-term surge, with scalping opportunities emerging as the price attempts to rise toward the resistance border of the parallel channel which can be used to generate forex signals.

The outlook suggests further upward pressure in the short term, but the overall bearish trend remains intact, pending confirmation of a breakout or reversal.