EURUSD Buyers Encounter Resistance at 1.06020 as Sellers Regain Control

EURUSD Faces Renewed Bearish Pressure

EURUSD buyers are encountering significant resistance at the critical 1.06020 level, as sellers regain momentum and reinforce the bearish trend. The currency pair remains under pressure, with persistent challenges for buyers attempting to reverse the current market dynamics. Despite occasional signs of recovery, the Euro market has weakened steadily after rejecting the 1.09470 level earlier this month.

EURUSD Key Levels

Resistance: 1.06020, 1.08400
Support: 1.05300, 1.04700

EURUSD has been in a consistent downtrend over the past two months, driven by strong selling pressure. Last week, sellers pushed the price down to 1.05300, solidifying their dominance in the market. Although buyers have shown occasional strength, they have consistently failed to break through key resistance levels, particularly around 1.06020. This continued rejection highlights the sellers’ control.

For the bulls to counter the prevailing sell-off, they will need considerable momentum. However, the repeated rejection at 1.06020 suggests that buyers currently lack the strength to alter the market trend significantly. The MACD (Moving Average Convergence and Divergence) reflects strong bearish sentiment, with its signal lines pointing downward. While there have been minor upward movements, they have not been sustained, indicating the persistent dominance of sellers in the market.

The RSI (Relative Strength Index) hovers near oversold territory, signaling potential for a recovery. However, its current levels also emphasize the firm grip that sellers maintain on the market.

Market Expectation

In the short term, the RSI shows a slight upward movement, suggesting that buyers may make an attempt to regain momentum.

On lower timeframes, sellers are actively pushing the market lower, aiming to retest the 1.05300 support level. While the MACD has displayed slight positive movement, it remains insufficient to shift the broader bearish sentiment. This underscores the importance of forex signals for traders navigating this challenging environment.

Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not for your investing results.