EURUSD Could Trade South as Price Rallies Back to 1.0600 Significant Level

EURUSD Analysis – Buyers Need More Force to Surpass the 1.06000 Significant Level

EURUSD could trade south as the price rallies back to a 1.06000 significant level. The traders are currently building up momentum to push forward in the market. The momentum indicator is currently increasing in the market. As buyers keep surging up, there could be a break tending upward beyond the 1.06000 key level. The parabolic SAR (stop and reverse) indicator is currently building up as buying pressure increases. However, the EURUSD is also plausible for a reversal if the buying tendency appears to decline as the price continues to trade up in the coming days.

EURUSD Key Levels

Resistance Levels: 1.06000, 1.0323

Support Levels: 0.99300, 0.95740

Following the bearish dispel, buyers initiated bullish activity up to the 0.95740 key zone. From this moment on, prices began to swing upward in the market. With the buying traders making an upswing, the sellers kept attacking their progress in the market. Following the price break above the 0.99300 key zone, the buyers proceeded with strong buying in the market. The currency pair eventually made its way up above the 1.03230 key zone, after which the price consolidated. The bulls are currently rising above this critical level.

The 2022 year is currently coming to an end, and we still expect a price buildup in the market. The momentum indicator still shows spikes in price as buyers still wield strength in the market. The Stochastic on its end reveals the price setup to be rejected at the 1.06000 key zone due to an overbought signal. Traders should brace themselves for a price change either way.

Market Expectation

The sellers are looking for a way of penetrating the market. This implies that the price may trade lower as buying pressure on the 4-hour chart decreases. However, if the buying tendency persists, there could be more room for a bullish run on the EURUSD market.

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