EURUSD Drops as Sellers Flirt Below the 1.09160 Key Level

EURUSD Analysis – Market Now Settles for a Bearish Drive

EURUSD drops as sellers flirt below the 1.09160 key zone. This is a sign that the market has decided to settle in a bearish direction.

The currency pair has been in a sideways movement since the beginning of this year, between the key levels of 1.10550 and 1.05260. This sideways market has therefore been sustained for a while, with buyers failing to breach above the 1.10550 key level.

EURUSD Key Levels

Resistance Levels: 1.10550, 1.09160
Support Levels: 1.05260, 1.02530

The month of June saw the buyers make a strong move from the 1.06850 key zone up to the 1.10550 market level. However, the recent closing of the price last week indicates that either the buyers could take a little pullback and then resume their bullish ride back to the 1.10550 market level or the sellers could remain dominant in the coming days. 
 
It is crucial to note that any further decline to the 1.09160 zone could open up the possibility of a deeper retracement. This could potentially push the price to the 1.08000 support level. On the other hand, any strong bullish activity could see the EURUSD break the 1.10550 resistance.

The Parabolic SAR (Stop and Reverse) indicator has switched sides as sellers now make their appearance lower in the market. Also, the Stochastic Oscillator on the daily chart appears to be giving sellers confidence in the market.

Market Expectation

Technical analysis of the forex market using the Stochastic Oscillator shows that the bulls are back in the market. The Stochastic Oscillator indicates a buy signal, and if the buyers can push the price back to the 1.09160 key zone, then there is a good chance of a bullish continuation back to the 1.10550 market level.

However, if the buyers fail to reach the key level, it could lead to a further price breakdown.

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