EURUSD Resumes the Market Trend in a Downward Direction

EURUSD Analysis – The Market Resumes Its Trend in a Downward Direction

EURUSD resumes the market trend in a downward direction. The daily timeframe has been extremely bearish since the beginning of last year. The market has been descending through a creek for a few months now as the pair keeps maintaining the market structure.

EURUSD Major Zone

Demand Zone: 0.9960, 0.9620
Supply Zone: 0.0630, 0.1490

Until March 11th, 2020, it appears that the Euro has struggled to maintain its value against the US dollar. Following the bulls’ struggle to strengthen the Euro’s value against the US Dollar, the bears stormed the market a few pips below the pair’s 2017 local high and crashed the market massively downward. The support level of 1.1490, which was last considered a resistance level on the 11th of March, 2020, was broken on the 11th of November, 2021, after the bears stormed the market.

A retest at this important level drew even more, bears into the market. Ever since the retest, EURUSD market has remained in a clear downtrend, with further confirmation by the Simple Moving Average (SMA) trend following indicator. Apparently, since the beginning of the downward trend, the market appears to be forming swing lows in every oversold region, as indicated by the Relative Strength Index (RSI).

Market Expectation

EURUSD market appears to be retracing upward on the four-hour timeframe, as prices reacted to the 0.9960 resistance level. The upward correction is expected to conclude at one of the Fibonacci retracement levels. Because it coincides with the daily timeframe Break of Structure, the Fibonacci retracement level of 0.618 will most likely end the upward correction (BOS).

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