EURUSD Buyers Exit the Market After Hitting the Supply Zone

EURUSD Analysis – Buyers Exit the Market After Hitting the Supply Zone at 1.0160

EURUSD buyers exit the market after hitting the supply zone. EURUSD has been declining rapidly for a long time. The downward trend can be confirmed by the volatility of the market as the buyers take much more time to deliver prices within a range compared to the EURUSD sellers. The previous support at 1.034 had been strong until the selling pressure caused a breakout in July 2021.

EURUSD Significant Zones

Demand Zones: 0.9860, 0.9610

Supply Zones: 1.0160, 1.0340

The market trend resumed to the downside in June 2022. The EURUSD buyers ensured that the previous attempts to break the 1.934 previous support kept failing until July 5, 2022. Another reason for the breakout was the selling pressure that began at the diagonal resistance towards the end of June 2022. As EURUSD kept crashing downward, prices began to respect diagonal support in July 2022 while gyrating about the 1.0160 price level.

The market rallied up with the aid of diagonal support until prices successfully filled the liquidity void formed on the 5th of July, 2022. The 1.0340 supply zone rejected the price down due to large sell orders placed by the EURUSD sellers in the zone. Prices declined rapidly to the downside, breaking the diagonal support, and squeezing the buyers out of the market. As the market rallied down at that point, it left a liquidity void in the market. This liquidity void was later filled as the price rallied into the 1.0160 supply zone.

Market Expectation

In the four-hour time frame, the current bearish environment began after EURUSD hit the supply zone at 1.0160 on the 12th of September, 2022. As the market now consolidates, liquidity is being taken at the range’s low and high. The EURUSD buyers are expected to rally the price into the daily order block before the EURUSD finally ceases the market to the downside.

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