EURUSD Is Set for Another Impulsive Move

EURUSD Analysis – Price Is Set for More Impulsive Moves

EURUSD is set for another impulsive move towards the downside. The bears currently rule the market. This is seen with higher lows and lower lows. Demand zones are continuously violated with long bearish candles, showing the sellers’ aggression. The RSI (Relative Strength Index) on the daily chart is clearly below 50, showing the overall bearishness on the daily chart. The Moving Average period 21 also corresponds by crossing continuously towards the downside.

EURUSD Significant Levels

Demand zone: 1.2000, 1.520, 1.210
Supply Zone: 1.2250, 1.9000, 1.1700
The demand zone at 1.2100 was violated on the 16th of June. The demand zone at 1.5200 also tried to resist the sellers but was violated with another impulsive move on the 10th of November. The impulsive move continued consecutively for a few days with only two small bullish days. On the 24th of November, the demand zone at 1.2000 was struck.

The market has experienced days of consolidation followed by large impulses. The market consolidations seem to gather enough strength for the bears to unleash impulse moves again and again.

Market Anticipation

On the 4 hour timeframe, the EURUSD is seen to be in another consolidation. The consolidation started on November the 21st and continues to the current date. The 9 and 21 Moving Averages have been crossing sideways since the beginning of the consolidation. The Relative Strength Index is still prominently below 50, showing that the market is still bearish. If the bulls’ resistance is strong enough, the price might bounce back to 1.1350 again. If the bulls fail to defend the zone, EURUSD is likely to plunge to 1.1150.

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