EURCHF Retracement Follows Severe Price Crash

Market Analysis – August 8

EURCHF has undergone a substantial price decline, initiating a retracement from its previous bullish trend. The recent retest of the bullish trend line has led to a bearish breakout, establishing a clear downtrend. Since testing the demand zone at 0.9270, the price has begun to rise gradually.

EURCHF Key Levels:

• Demand Levels: 0.9380, 0.9270, 0.9000
• Supply Levels: 0.9500, 0.9640, 0.9880

EURCHF Long-Term Trend: Bearish

In the longer term, EURCHF has faced resistance at the 0.9770 level, opting for the supporting trendline. After testing this trendline, the price initially bounced upwards. However, this ascent was short-lived as the price quickly reversed and broke below the trendline, reinforcing the bearish sentiment.

The Machine Learning Lorentizan Classification indicator issued a sell forex signal at the supply zone of 0.9940, which preceded an intensive price crash. The drop from 0.9500 to the demand zone of 0.9270 occurred swiftly, driven by a series of daily bearish candles. Additionally, the Average True Range (ATR) has reached its peak, highlighting increased volatility as evidenced by the wider daily price range.

EURCHF Short-Term Trend: Bullish

In the short term, a bullish pattern has emerged. The 4-hour chart reveals a double top formation at 0.9380. The price has moved above the Lorentizan Classification string, indicating a potential upward movement. Currently, the price is undergoing a pullback towards the previous resistance zone of 0.9530. This retracement is occurring within the context of the overall bearish trend, suggesting a temporary recovery before potential further declines.

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