EURCHF Resumes Its Bearish Trend

EURCHF Analysis – December 2

EURCHF resumes its bearish trend as the price falls alongside a falling trendline. The market has been in a bearish environment since March 2023. The RSI (Relative Strength Index) is currently above the 50.0 level. Apparently, the RSI rarely breaks the 50.0 level to the upside.

EURCHF Key Levels

Demand Zones: 0.94200, 0.91500
Supply Zones: 0.98400, 1.01000

EURCHF Long-Term Trend: Bearish

EURCHF began its bearish trend in the first quarter of the year. The price has since been crashing alongside an emerging falling trendline.

A bounce of the trendline led the price to the downside until a low formed at 0.97100. After a retracement to the upside, the decline resumed again until the 0.97100 low was invalidated. More bears stormed the market as a result of the invalidation of the 0.97100 low. This led to further decline, with major support levels failing to hold the fall.

Following the invalidation of the 0.97100 low and the 0.96700 low, the bearish trend resumed with increasing momentum. At 0.95100, a new low formed as the price retraced upward due to the oversold state of the market, according to the RSI. A major high formed at 0.96900 as the price returned downward after the RSI crossed the 50.0 level upward. After the invalidation of the 0.95100 low, another retracement to the upside occurred until the falling trendline was hit.

EURCHF Short-Term Trend: Bullish

On the four-hour chart, EURCHF is in a bullish trend. However, the momentum of the bullish trend has declined, notably as the price failed to successfully break through the diagonal resistance. The invalidation of the equal lows at 0.96200 is expected to lead to a massive crash to the downside.
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