Price Analysis – EURUSD Is Facing a Fight to Plunge
EURUSD is facing a real obstacle that is preventing it from falling. The obstacle is in the shape of a weekly support zone that lies between 1.17850 and 1.17100 key levels. The market has found it very hard to break through the zone in previous trials. The last success came as far back as the 4th of November last year. And even at that, the next support at 1.16070 pushes the price back above the support zone.
EURUSD Significant Levels
Resistance Levels: 1.18400, 1.20600, 1.21700
Support Levels: 1.17850, 1.17100, 1.16070
The weekly support provides a solid foundation to force the price to continue its upward movement or go into a consolidation phase. On the 16th of June 2021, the price sank from 1.21700 resistance and fell to 1.18400 support. The support held it up till the bears pushed it further down. EURUSD is now face-to-face again with the weekly support zone for only the second time this year. The first encounter, which took place around the 25th of March 2021, resulted in a pump in the market.
The MA period 200 (Moving Average) is showing an uptrend in the market. Bears are trying to force a downward change in the market direction. EURUSD went below the MA during its down-surge on the 16th of June 2021. The signal lines of the Stochastic Oscillator have dropped into the oversold region. It is expected that there will soon be an upturn in the price.
Price Expectations
EURUSD is seen descending towards the weekly support on the 4-hour chart. The market has now tested the zone two times, with the third time coming at the point of writing. The MA period 200 is also bending towards the candles to acknowledge market bearish activities.
The Stochastic Oscillator on the 4-hour chart is in agreement with that on the daily chart. Its signal lines have plunged into the oversold region. The market is expected to change direction upward anytime from now with the 1.20600 key level in sight. Only a very strong bearish movement that will drill price through the weekly support zone can hinder this.
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