EURUSD Defies Several Key Levels to Keep Up Its Bearish Momentum

EURUSD Analysis – Price Defies Several Significant Levels to Keep Plunging

EURUSD defies several key levels as it keeps plunging to keep up its bearish momentum. The EURUSD recently hit the upper border of its downtrend channel and then maintained above the 1.15210 level before crashing down to the channel’s lower border and then breaking out completely from the channel.

EURUSD Important Zones

Resistance Zones: 1.14420, 1.15210, 1.16200
Support Zones: 1.13720, 1.12940, 1.12070
A downtrend was sparked after the price pushed itself up to the 1.23500 monthly resistance level at the beginning of the year. From there, the first phase of the downslide began as the market zigzagged through a descending channel. However, on May 24th, the price plunged below the channel further down to 1.17100. Instead of being a source of strength, the bears became too relaxed, allowing the bulls to nick the market from them and push price past the channel to 1.22700.

At 1.22700, bulls also suffered market weariness and ceded price dominance. Bears resumed their campaign and kickstarted the second phase of the market plunge. EURUSD, therefore, defies several key levels as it slides down. Price, therefore, defies the bulls and zigzags downward for 5 months from June to November. However, another thrust through the lower border of the channel has happened, and this might be another rallying point for the bulls.

Market Expectations

On the 4-hour chart, as price defies the lower border of the descending channel, the Stochastic Oscillator lines have sunk into the oversold region just like on the daily chart. Just like in previous times, bulls will use this opportunity to counter the bears by rallying at this level, 1.13720. The Parabolic SAR (Stop and Reverse) is still showing a downtrend, but the bullish candlestick keeps building up. In addition to the ones already shown, we can expect a signal of dots below the 4-hour candlesticks. This move by the bulls should at least lift the market to the upper border of the downtrending channel at 1.16200.

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