EURUSD Bears Resurge as Buyers Face Resistance

EURUSD Analysis – Bears Regain Momentum

EUR/USD bears resurge as buyers face resistance. Despite the EURUSD price closing with bullish gains in the previous week, the bears have managed to recover their lost vigor. Initially, the bulls successfully held the sellers at bay, preventing them from breaching the critical 1.04850 support level. The buyers, driven by a desire to reverse the market sentiment, began their ascent but were forced to withdraw before reaching the significant 1.06290 level.

EURUSD Key Levels

Resistance Zones: 1.12850, 1.09460
Support Zones: 1.07470, 1.06290
As October unfolds, the sellers are gradually strengthening their position, implying that the prevailing sell trend may persist for some time. The bears are now inching closer to the 1.04850 price level, and with building momentum, it becomes more likely that sellers may penetrate this level in the coming week.

The Parabolic SAR (Stop and Reverse) indicator remains firmly in favor of the sell momentum, providing sellers with ample opportunities as buyers struggle to make an impact.

On the daily chart, market sentiment remains firmly in favor of the bears. The Chaikin Money Flow indicator indicates that price direction is sensed below the zero level. It confirms the prevailing sell-market sentiment. Buyers appear to be losing their influence as sellers seize control of the narrative.

Market Expectations

Turning to the 4-hour chart, the sell sentiment continues to gain solid traction. With each passing moment, the possibility of further downward extension becomes increasingly plausible.

However, it’s worth noting that buyers are still patiently waiting for any available opportunity to counter the prevailing price trend. A stronger buildup could potentially give sell-side traders a more significant edge in the market. As the month unfolds, the balance between buyers and sellers will be key in determining the currency pair’s future direction.

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