EURUSD Bleeds Through the 1.07660 Significant Zone

EURUSD Analysis – Sellers Could Extend More Losses

EURUSD bleeds through the 1.07660 significant zone. The EURUSD pair has been in a downtrend since the middle of July. Since then, the pair has lost more than 11% of its value. As a result, it has broken through several key support levels along the way.

The latest support level to be breached was 1.07660. This is a significant zone that held the pair in a range for most of July and August. The break below this level indicates that the sellers have gained more momentum and could extend their losses further.

EURUSD Key Levels

Resistance Zones: 1.12730, 1.10730
Demand Zones: 1.09430, 1.05120

Based on the technical indicators on the daily chart, it appears that the EURUSD pair is currently in a bearish scenario. The MACD indicator is below the 0.00 level, indicating that the sell motion is still in control. The MACD histogram also shows negative values, suggesting that the bearish momentum is increasing. 

Additionally, the MFI is below the 50 level, indicating more selling pressure in the market. This means that more money is flowing out of the market than into it, making it difficult for buyers to enter the market.

Market Expectation

In the 4-hour chart, the sellers are still keeping their distance from the market. The pair has been trading within a descending channel since mid-August. This shows that the downtrend is well established. This suggests that the sellers are still in control and could push the price lower.

As the new week unfolds, sellers may intensify their sell orders to drive down to the 1.05120 market level. Therefore, traders should look for sell opportunities on rallies or breakouts to take advantage of this bearish trend.

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