EURCHF Retraces to Bearish Order Block

Market Analysis – September 21

EURCHF continues its market structure, driven by lower highs and lows, and has solidified a bearish trend. The recent decline paused, leading to a retracement into an unmitigated bearish order block.

EURCHF Key Levels

Demand Levels: 0.92860, 0.92110, 0.91500
Supply Levels: 0.94780, 0.95660, 0.96430

EURCHF Long-term Trend: Bearish

Since the beginning of August, EURCHF has been in a downward trend, with the price forming a major swing low. This swing low serves as a reference point for a bearish parallel channel. After a pullback, the price tested a bearish order block, which halted its ascent towards the channel’s upper boundary. The Stochastic indicator confirmed overbought conditions at the test of the 0.95660 bearish order block.

This test sparked a micro-trend toward the major low set in August. A reverse head-and-shoulders pattern has formed on the 24-hour chart, prompting another pullback to the bearish order block within the micro-trend. The Parabolic SAR (Stop and Reverse) points below the daily candles signal this pullback.

EURCHF Short-term Trend: Bullish

In the short term, the lower timeframe (4-hour chart) indicates a bullish shift in market structure. The bearish order block on the daily chart now acts as a key supply zone on the 4-hour chart. A breakout above this zone could lead the price toward the resistance trendline. However, if the selling pressure persists, the bearish trend may resume.