EURCHF Witnesses Downward Spiral in Price

Market Analysis – May 21

EURCHF has experienced a significant price decline after the demand level of 0.9730 failed to hold. The Average Directional Index (ADX) indicates that the prevailing bearish trend is robust. The price is rapidly approaching the unmitigated bullish order block at 0.9400.

EURCHF Key Levels

• Demand Levels: 0.9480, 0.9300, 0.9000
• Supply Levels: 0.9720, 0.9930, 1.0000

EURCHF Long-Term Trend: Bearish

The Parabolic SAR (Stop and Reverse Indicator) has shifted its position to above the daily candles at the 0.9930 price level, following the appearance of a long-legged bearish Doji candle. This Doji signalled decreased momentum in the bullish trend. Subsequently, a large bearish candle, indicating increasing selling momentum, broke through the bullish trendline and the demand level of 0.9730.

The current bearish slope is very steep due to the rapid downward price movement, creating fair value gaps that may influence future price movements. Since May 27, the price has declined by approximately 450 pips, causing a market crash of about 4.55%.

EURCHF Short-Term Trend: Bearish

The price is swiftly moving towards the bullish order block at 0.9340. In the lower timeframe, a bullish change of character (ChoCh) was observed, which may cause a pullback to the bearish order block below the major zone of 0.9730. The demand level of 0.9400 is under threat as selling momentum remains high.

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