EURCHF established a bearish breakout from the falling wedge in July. Shortly after the daily candles pressed on the resistance trendline at the supply zone of 0.9840, the price crashed rapidly to enforce the breakout.
Beginning its descent in January, EURCHF has consistently shaped lower highs since its peak at 1.0100, solidifying a discernible downward trend within the market. This ongoing pattern of lower highs indicated a gradual but persistent shift in market sentiment, favouring the bears. It was a clear sign that the currency pair had been consistently struggling to reach the previous high, reflecting a growing selling pressure.
The bearish sentiment was strongly confirmed shortly after the breakout of the falling wedge pattern in July. This breakout prompted the Stochastic oscillator to plummet into the oversold region, which is typically seen as a signal of potential market weakness. Following this confirmation, the market retraced, moving upward to test the critical supply level at 0.9650. This retracement presented an attractive opportunity for sellers to enter the market at an optimal price point.
Capitalizing on this retracement, sellers effectively contributed to the continuation of the well-established bearish trend. Consequently, the price resumed its descent, revisiting the previous low of 0.9520, further emphasizing the enduring strength of the bearish trend and reaffirming the market’s commitment to its downward trajectory. These developments underscored the importance of staying attuned to the prevailing bearish sentiment in EURCHF for traders and investors alike.
EURCHF Short-term Trend: Bearish
The test of the demand level of 0.9520 engineered a bullish shift in market structure on the lower timeframe. The higher timeframe bearish wave is expected to overwhelm the lower timeframe bullish shift to break the support of 0.9520.
Trade on MT4 with Leverage up to 1:500! Trade on MT4 with Leverage up to 1:500!
X
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
EURCHF Short-term Trend: Bearish
