EURUSD Rebounds Sharply From a Significant Level to Revive Bullishness

EURUSD Analysis – Price Rebounds Sharply From 1.11290 in a Bullish Move

EURUSD rebounds sharply from the 1.11290 significant level to put the market back in the buyers’ hands. The market was already anticipated to rise to continue the bullish trend as stipulated by the weekly ascending trend line. However, the climb of the price above the market’s consolidation border led to the bulls’ weariness. This led to a drop through the consolidation and below it. Nevertheless, EURUSD was able to get a foothold at 1.11290 from where it sharply rebounded.

EURUSD Significant Levels

Resistance Levels: 1.17130, 1.15180, 1.13840
Support Levels: 1.12360, 1.11290, 1.09900
The market remains in an uptrend that stretches as far back as 2020. Therefore, it is anticipated that the price plunge that occurred towards the end of last year (as a result of a double top formation) will be reversed at some point. The consolidation that occurred from the 12th of November to the 7th of January was seen as the reversal point, and this was playing out till market forces drowned the price below the consolidation.

Market bearishness remains as prices rebound sharply from the significant support level. Once again, the consolidation zone has been bypassed. EURUSD will now try to breach the level where it initially dropped. The MA period 50 (Moving Average), which pressed the market downward, has been violated. It now acts in support of the market. The Average True Range indicator shows that it took a volatility increase to reset EURUSD on an uptrend.

Market Expectations

Just like on the daily chart, the MA period 50 has bent to act in support of the market. The ATR indicator shows a clear rise in market volatility, which helped the price dash through the consolidation zone. This indicates that EURUSD is well-positioned for more upward movement. We can expect a pullback to 1.13840 before a further price increase towards 1.17130.

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