EURUSD Bears Successfully Drove the Market to a Supply Zone

EURUSD Analysis – Bears Successfully Drove the Market to the Supply Zone at 1.0790

The EURUSD bears successfully drove the market to the 1.0790 supply zone. The daily timeframe trend-line indicates a bearish market order flow. This bear market started in February 2022. The market appeared to be converging in a descending triangle at first, leading to a downward breakout at the previous support of 1.0790 on April 22nd, 2022.

Market Major Zones

Supply Zones: 1.0350, 1.0790

Demand Zones: 0.9950, 0.9710

The last daily retest before the 1.0790 previous support was broken led the market to lower previous support at 1.0350. The bulls took control of the market at this point, but the bears’ reaction to the trend line and resistance at 1.0790 brought the bullish trend to a halt. The double bottom at the 1.0350 support confirmed how the bears were struggling to change the market trend to an uptrend until the bears reclaimed control of the market as prices rallied towards the daily trend line.

The market entered an oversold region after breaking previous support at 1.0350 and reaching the demand zone at 0.9950. As the market exited the oversold zone, the bulls took control and drove prices higher, as confirmed by the Parabolic SAR. Unless there is a change of character (CHOCH), the market may resume its downtrend as it approaches the daily trend line and supply zone at 1.0350.

EURUSD Market Expectation

Since the 14th of July, 2022, the four-hour timeframe market trend has been bullish until the price entered the oversold region. The shift in market structure that occurred when the market last hit the daily trend-line is expected to drag the market down until the liquidity below the swing low is cleared. The four-hour timeframe order block is also expected to act as a breaker, causing the market to fall and break the demand zone at 0.9950.

Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.