EURCHF Suffers Price Decline from Resistance Zone

Market Analysis – August 29

EURCHF continues to exhibit a classic downward trend, consistently forming lower highs and lows. The price decline has firmly taken hold, with multiple demand zones on the daily chart invalidated. Despite a recent pullback, strong rejection has swiftly resumed the downward momentum.

EURCHF Key Levels

Demand Levels: 0.93150, 0.92540, 0.90000
Supply Levels: 0.95200, 0.97000, 0.98850

EURCHF Long-Term Trend: Bearish

Currently, EURCHF is in its third bearish displacement within the ongoing downtrend. This trend began in early June with the first bearish displacement, which sparked the downtrend. The initial 4.51% price decline broke through the previous demand level of 0.9730 and the swing low of 0.9570, solidifying the bearish direction. Following this, the market attempted a pullback, rising to a region of market inefficiency just below a bearish order block formed on May 31.

Then, the second bearish displacement unfolded, beginning with a double top reversal pattern at 0.9700. The price subsequently plunged by 5.76% over several days. Notably, this decline featured the formation of “three black crows,” highlighting intense selling pressure. As a result, the price fell below the swing low of 0.9470, reinforcing the bearish trend.

EURCHF Short-Term Trend: Bearish

The third bearish displacement has now begun. On the four-hour chart, the bullish pullback was quickly halted by a reversal at the 0.9520 supply zone. On the daily chart, this level corresponds with a prominent bearish order block. The price is expected to continue its downward movement, targeting the previous swing low. With this momentum, the swing low of 0.9290 presents a strong target for forex signals.

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