EURUSD Analysis – Buy Strength Slips
EURUSD buyers struggle with potential relief. The pair has been experiencing a weak demonstration from the bulls this week, indicating potential relief for buyers. The price has been slowing down since last week, pulling towards the significant level of 1.10000. Despite the buyers’ efforts, they have struggled to make more supply and regain control.
EURUSD Key Levels
Resistance Levels: 1.12000, 1.11250
Support Levels: 1.09000, 1.05980
Last month, the buyers managed to relieve the sell traders from the key level of 1.05980. Since then, they have been putting in effort to maintain control of the market. However, this week started with the market opening around the 1.08600 key level, and it has been accumulating since then. This indicates that the buyers have lost some of their recently gained momentum.
With the current situation, it is expected to take some time for the buyers to pull back to the significant zone of 1.1000. The stochastic oscillator, which is marked around the overbought side, explains the reason for the buyers’ struggle at the beginning of this week. This indicator suggests that the market may have become overextended, leading to a temporary loss of momentum for the buyers.
The moving average crossing indicator is still calling the shots for the buyers to continue the upward trend. However, a crossover between the moving averages could lead to bearish confirmation if the sellers gain more control.
Market Expectation
On the four-hour chart, the buyers have noticeably slowed down, indicating a temporary pause in their momentum. It may take some time for the buyers to build back their strength and regain control of the market. Traders should exercise caution and closely monitor the price action and key levels for potential opportunities.
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