Market Analysis – EURUSD Buyers Regain Their Stance
EURUSD begins to climb again for the new week. Last week, the pair experienced a dip, with the price lowering to the significant 1.07950 level. This level acted as a strong support, preventing further declines and setting the stage for a bullish rebound.
EURUSD Key Levels
Resistance Levels: 1.08890, 1.07900
Support Levels: 1.06540, 1.05740
Throughout April and May, the euro has shown significant appreciation. Although part of April began with a fall from the 1.08890 key level, the buyers have managed to regain control and push the price higher. The end of April and May saw the buyers make a solid difference, giving the euro price a substantial boost.
As we speak, the EURUSD price is heading towards the 1.08890 significant level. This key level, which previously acted as resistance, is now within reach, and the buyers are pushing hard to break through it.
The Stochastic Oscillator, a popular momentum indicator, is currently pulling near the 78.800 level. The signal line is close to 100, indicating strong buying pressure. However, this also suggests that the market may be approaching overbought conditions, making a reversal plausible this week.
The 1.08890 price level is a critical resistance point that the buyers are currently targeting. A breakthrough above this key level could pave the way for further bullish intensity. However, the bears are likely to set up strong resistance near this level. This makes it a crucial battleground for both buyers and sellers.
Market Expectation
The buy tendency for the new week is yet to be confirmed, as the bears are likely to put up a strong fight near the 1.08890 price level. Traders should watch for a decisive breakthrough above this level to confirm the continuation of the bullish trend.
Given the current readings of the stochastic oscillator, a reversal is plausible this week. Traders should be cautious and look for signs of a potential trend reversal, especially if the price fails to break higher.
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