EURCHF Retests Supporting Trendline

Market Analysis – August 1

The EURCHF market encountered resistance at the 0.9770 supply zone, prompting a price decline for a retest on the supporting trendline visible on the daily chart. This recent movement has been closely monitored by traders, as it suggests potential further bearish activity.

EURCHF Key Levels

• Demand Levels: 0.9530, 0.9380, 0.9320
• Supply Levels: 0.9690, 0.9770, 0.9880

EURCHF Long-Term Trend: Bearish

In July, the Williams Percent Range indicated that the market was overbought when the price reached a significant level of 0.9770. This overbought condition led to the formation of a double top pattern, a classic bearish reversal signal, which suggested a shift in market structure.

Following the price displacement from this zone, the Machine Learning Lorentizan Classification Indicator issued a short signal, reinforcing the bearish sentiment. The price subsequently plummeted to the bullish trendline, marking a significant downturn in the market.

EURCHF Short-Term Trend: Bearish

Currently, the Relative Strength Index (RSI) indicates oversold conditions on both the higher (daily) and lower (4-hour) time frames. The market structure remains bearish, with no clear signs of a bullish reversal. The bearish trend is likely to continue unless there is a significant change in market conditions.

Traders must confirm indicator signals with the overall market structure before considering a long position. Monitoring these key levels and indicators will be essential in anticipating potential market movements and making informed trading decisions.

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