EURCHF Bears Successfully Led the Market Into the Demand Zone
EURCHF Analysis – July 26
EURCHF bears successfully led the market to the 0.9650 demand zone. Before reaching its local all-time high, the market had risen from a major support level of 0.9650. On April 20, 2018, the market reached its all-time high in the region. Since then, the market has been trending downward.
EURCHF Significant Levels
Demand Levels: 0.9980, 0.9650
Supply Levels: 1.0500, 1.1170
EURCHF Long-term Trend: Bullish
The demand level of 0.9650 is also the market’s all-time low since 2015. The rejection at the demand level drew more bulls into the market, causing it to break through every resistance level on its way up. The market remained bullish until a shift in market structure occurred following the attainment of the local all-time high. The change in the market structure after the local all-time high was reached resulted in an influx of sellers into the market.
The Relative Strength Index (RSI) indicates that prices always retrace when the market enters an oversold region. With additional confirmation from the Simple Moving Average (SMA), prices crashed into a lower demand level at 1.050. For a few days, the bulls drove the market into the supply zone at 1.1170. The supply level of 1.1170 was sharply rejected, and the market was driven downward.
EURCHF Short-Term Trend: Bearish
The market appears to be in a downward trend on the four-hour chart. The market trend will likely be lower for the next few days to enter the demand level at 0.9650 and change direction upward. As a result, a fakeout at the 0.9980 support level is possible because this downtrend may only last a few days.
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