EURUSD bulls are poised to reverse the market trend upward

EURUSD Analysis – The bulls are poised to reverse the market’s trend upward

EURUSD bulls are poised to reverse the market trend upward. For a long time, the EURUSD pair has been in a downtrend. The EURUSD buyers appear to be completely dominating the market, as prices continue to fall through lower highs and lower lows. The market began to respect the diagonal trendline resistance on May 31, 2022. Following the market’s break of structure, more bears stormed the market with sell orders, driving prices even lower.

EURUSD Significant Zones

Demand Zones: 0.9950, 0.9860
Supply Zones: 1.0100, 1.0360

The market sank into a discount after the market structure broke to the downside on the 31st of May. EURUSD remained in a discount until the previous support at 1.0360 rejected prices to the upside into the diagonal trendline resistance on May 13, 2022. The EURUSD bulls struggled to keep the price from falling at the diagonal trendline resistance until the bears stormed the market again and into the previous support at 1.0360 on June 15th, 2022. The bulls failed to break the diagonal trendline resistance to the upside, causing the previous support at 1.0360 to be broken downward.

After the previous support at 1.0360 was broken, there was a massive sell-side displacement. The market entered an oversold region once more, as revealed by the RSI indicator, but rallied after bouncing off the 0.9950 support. The 1.0360 level seems to be a significant level, as it consistently rejects prices to the other side when approached. After the bears stormed the market at the supply zone of 1.0360, the EURUSD bulls were squeezed out.

Market Expectation

The market has been rallying upward with relatively stronger momentum after breaking through the four-hour trendline resistance. The market is expected to continue rising, but it may first retrace to the four-hour fair value gap before the EURUSD bulls resume the market’s upward trend.

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