EURUSD Analysis – Price Is Dropping Towards the Confluence Zone Around 1.09900
EURUSD is dropping towards the confluence zone around 1.09900. This is despite the best efforts of the buyers to divert the market back upwards earlier than expected. As a result, the price was blocked from falling at 1.12360. The market undulated for 9 days on top of the level and even attempted to push through to the next upper level. But the market eventually went in the direction of its general trend – downward.
EURUSD Significant Levels
Resistance Zones: 1.22620, 1.17130, 1.15180
Support Zones: 1.12360, 1.11290, 1.09900
Since December 2016, the price has been climbing on an uptrend line. Despite several movements in the market, the price does not drop below the uptrend line. The next time the market touched down on the line was in 2020. The market almost broke it, but again, it withstood and continued the gradual uptrend.
Once again, the market is dropping after a double bottom formation below 1.22620. The price has broken the neckline at 1.17130 and has fallen to 1.12360. The 1.12360 support level tries to halt the price fall, but it doesn’t take long to bulge. EURUSD has bounced down from the MA period 100 (Moving Average) and is now approaching the uptrend line again. Buyers are quietly hopeful of overturning the market on or before reaching the 1.09900 confluence.
Market Expectations
On the 4-hour chart, the breakdown of the market below the 1.12360 support level has left the RSI (Relative Strength Index) tumbling into oversold status. Currently, there is some respite above 1.11290 and the price is now accumulating above the level. If the level is strong enough to withstand the fall in the market, then we could see a market reversal here or at the lower support of 1.09900.
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