Bears target a 0.4% drop into the demand zone area

  • EUR/CHF bears are engaging at 4-hour resistance with sights n a daily downside extension. 
  • The focus is on the demand territory, some 0.4% lower.  

Further to the following prior analysis, EUR/CHF Price Analysis: Bears to take advantage of the discount, bears have indeed engaged with the price action as follows:

4-hour live market analysis

As illustrated, the price has dropped below structure and engaged sellers on a restest of the newly formed resistance within a bearish environment.

In addition, the extra conviction is supported by the head and shoulders bearish pattern. 

Prior daily chart analysis

In the prior analysis, the bearish forecast was based on a weekly M-formation and an overextended daily bearish trend that has corrected to a 61.8% Fibonacci level. 

The expectations would be for a continuation of the downside into demand, some 0.4% lower, as illustrated in the above chart. 

Live market 

As illustrated, the daily chart is bearish with price capped by resistance and below dynamic trendline resistance also. 

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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