EURUSD Buyers Poised to Seize the Market Control

EURUSD Analysis: Buyers Poised to Seize the Market Control

EURUSD buyers were poised to seize market control as the market approached the demand zone of 0.9950. Higher time frames have long been bearish in the market. On the daily time frame, the market’s bearishness resumed on February 10th, 2022, following the formation of a double top at the current year’s high. The formation of this double top was caused by the price demand in the high of the order block formed at the first top of the tops.

EURUSD Significant Zones

Demand Zones: 0.9950, 0.9610

Supply Zones: 1.0370, 1.0790

Since the formation of the double top, the market has been extremely bearish with no sign of the bulls taking total control of the market. As a result of the double top formation, prices began to trend downward and approached the previous support at 1.0790 before being rejected to the upside. After the buyers rallied the price to the third high formed on March 31, 2022, the previous support failed to hold. Sellers again supplied EURUSD to the market, pushing it down into the previous demand zone at 1.0370.

A correction was made by the buyers to the upside until May 30th, 2022. With the previous support at 1.0370 struggling to reject the price upward, the EURUSD sellers took control of the market again and sank the price further into a discount. Throughout July and August, EURUSD refused to break above and below the 1.0370 resistance and the 0.9950 support, respectively. On the daily time frame, the market’s current dealing range is between the 1.03690 and 0.99000 price levels.

Market Expectation

The market’s order flow on the four-hour time frame flipped bearish immediately after the shift in market structure (SMS) to the downside on the 12th of August, 2022. EURUSD appears to be gyrating about the 0.9950 support level as buyers and sellers struggle to take control of the market. For the market’s bearish trend to continue, EURUSD is expected to enter into the premium zone of the daily dealing range, after which a shift in market structure should occur to the downside.

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