EURCHF Sets To Invalidate 0.95450 High As Price Continues Upward

EURCHF Analysis – December 19

EURCHF sets to invalidate the 0.95450 swing high as the price continues upward. EURCHF has been bearish on the daily chart for months. The Moving Average Period 50 crossed the Moving Average Period 200 to the downside in May 2023. This indicated a long-term projection of the emerging downtrend. The price is currently heading into the premium zone, after which the bearish trend is likely to resume.

EURCHF Key Levels

Demand Zones: 0.94050, 0.93000
Supply Zones: 0.96900, 0.98400

EURCHF Long-Term Trend: Bearish

In late May 2023, the MA Cross signaled a sell as the Moving Average Period 50 crossed the Moving Average Period 200 to the downside. Following a bounce off the significant resistance at 0.98400, EURCHF experienced a notable crash.

The notable crash marked the commencement of the bearish trend as the price aggressively broke through major support levels. The crash continued until the price faced resistance, breaking through 0.95300. This caused the formation of equal lows at the 0.95300 price level.
 
As a result of the resistance met at the 0.95300 price level, EURCHF made a major retracement to the upside. Bouncing off at the 0.96900 supply zone, a rapid resumption of the downtrend emerged, leaving a bearish order block at the 0.96900 supply zone. A swing low formed at 0.94200 as a result of the resumption of the downtrend. Following the formation of the swing low, the price returned to the bearish order block at the 0.96900 supply zone.

EURCHF Short-Term Trend: Bullish

The formation of a new low at 0.94050 marked the beginning of a major correction to the upside in the market. On the four-hour chart, the market’s order flow is bullish. The price currently seems to be heading into a premium zone, after which the resumption of the downtrend is probable.

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