EURUSD Bears Successfully Lead the Market to a Demand Zone

EURUSD Analysis: Bears Successfully Lead the Market to 1.11240

EURUSD bears successfully lead the market to the demand zone at 1.11240. The Moving Average period nine and the Moving Average period twenty-one crossed on the 16th of September. A bullish candle formed amid bearish candles on the 15th of September. This triggered the impulsive move that led the price to the 1.5250 demand zone. The bulls pumped the price up to 1.6830. Upon reaching the supply zone, the bears successfully drove the market back into the demand zone at 1.15250.

EURUSD Significant Levels

Demand Level: 1.11240, 1.15250
Supply Levels: 1.6830, 1.14730
Three bullish candles formed consecutively from the 5th of November till the 9th of November. This was a trigger for the impulsive move towards 1.11240. The market consolidated all through December. The Moving Average periods of 9 and 21 crossed sideways continuously. A false direction was created after the consolidation. The market reached 1.14730 before dropping.

The market reached the demand zone at 1.11240 on the 28th of January. This caused an influx of buyers in the market. The price rallied into the previous supply zone at 1.14730. The bears once again drove the market to the 1.11240 demand zone. The demand zone faced sharp rejection on the 24th of February. The market had bullish candles that reached back into the demand zone. This is caused by a gap in the lower time frame.

Market Expectation

On the four-hour chart, the gap has been closed. The market is likely to reach higher in the short term for consolidation to gather more momentum for a bearish move. Hence, the market is expected to draw towards 1.14730. The bullish candles from the demand zone have smashed into the moving averages. The Moving Average period 9 is about to cross the Moving Average period 21 upwards to signify a bullish move.

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