EURUSD Analysis – Buyers Approach Another Stronghold
EURUSD bullish run may slow down. The pair has been on a strong bullish run, but the momentum may slow down soon. This is because the buyers are approaching another key level, namely the 1.09890 significant level. Throughout the year, this level has proven to be a significant barrier to price movement. It may pose a challenge for the buyers to overcome. However, if they manage to break through this level, we can expect to see further bullish demonstrations.
EURUSD Key Levels
Resistance Levels: 1.12800, 1.09890
Support Levels: 1.07590, 1.04370
The buyers have been putting up a fight against the sellers for the past two months. This bullish uprising began in October when the sellers lowered their guard around the 1.04370 significant level. Since then, there has been consistent buying activity, driving the price higher. Last week, the buyers experienced a strong surge in liquidity as they pushed past the 1.07590 significant level.
As the buyers approach the new key zone at 1.09890, there may be a slowdown in momentum. However, it is important to note that this does not necessarily imply that the buyers are exiting the market. The upper band of the Bollinger indicator is still acting as a resistance line. This indicates that the buyers are determined to push the price higher. Additionally, the Stochastic Momentum Index is gradually slowing down. Its end suggests that the buyers may be becoming overbought.
Market Expectation
For now, the EURUSD price remains in a bullish market, and the buyers are still looking to push forward. However, in the short term, the market is currently overbought. This indicates a potential slowdown in bullish pressure over time. Nevertheless, the reins remain with the buyers as they try to forge forward.
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