EURUSD Bears Approach Demand Zone at 0.9950

EURUSD Analysis – Market Bears Approach Demand Profit Zone at 0.9950

EURUSD bears approach demand zone at the 0.9950. The overall market has been in a bearish trend since the beginning of last year. Until early this year, the previous support at 1.1480 had been a very strong level in the market. After the previous support was broken, the price was retested more than twice to show its significance.

EURUSD Significant Zones

Demand Zones: 0.9950, 0.9610
Supply Zones: 1.0370, 1.1480

The retest of the previous demand zone at 1.1480 on the 4th of February, 2022, followed by the bearish indication by the Simple Moving Average (SMA), confirmed that the market’s downward movement continues as more bears now stormed the market with their targets being set at both the previous demand zone at 1.0370 and the current demand zone at 0.9950.

On the 13th of May, the bulls had to take the market out of the oversold region (as indicated by the Relative Strength Index) by retracing the prices upward till the bears took over from them. The downtrend continued afterwards, with prices forming lower highs uniformly. The previous demand zone at 1.0370 held prices upward for a while, but it couldn’t withstand the bears’ selling pressure and eventually broke downward.

Market Expectation

On the four-hour timeframe, the market had been rallying upward since mid-July until a change of character occurred immediately after the 0.9610 level was retested. The 1.0370 level has been retested and the market is expected to keep declining until the demand zone at 0.9950 is reached. Once this 0.9950 zone is reached, the market bears will likely take all or partial profits from the market, which should allow the bulls to retrace the market upward.

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