EURUSD Sellers Successfully Drive the Price Into a Demand Zone

EURUSD Analysis – Sellers Successfully Drive the Price Into a Demand Zone

EURUSD sellers successfully drive the price into a demand zone at 0.9630. The market overview has been completely dominated by EURUSD sellers for quite a while. On the daily chart, prices could be seen eddying and flowing within a descending channel. Across the boundaries of the descending channel, the market appears to be favoring the EURUSD sellers while also giving the EURUSD buyers some short-term buying opportunities. 

EURUSD Significant Zones

Demand Zones: 0.9630, 0.9540

Supply Zones: 0.9960, 1.0350

The descending channel emerged on the 28th of January, 2022. Before the emergence of the descending channel, the market’s condition was neither bullish nor bearish. Prices consolidate within a range under a bearish factor. The upper and lower price boundaries are 1.13741 and 1.11861, respectively. After a series of fake-outs from the range, the price came to form a double top at the 1.14948 price level. This price level also marked the current year’s high for EURUSD. Since the successful breakout from the range, EURUSD sellers have been in complete control of the market.
 
A breaker block formed as the price was on its way to forming the double top. This breaker block was used to propel the price down on the 30th of March, 2022. EURUSD sellers find re-entries at mitigation blocks or premium arrays whenever the price moves algorithmically upward. Coincidentally, every bounce on the upper boundary of the descending channel could be seen as a long-term selling opportunity. Conversely, every bounce off the lower boundary of the descending channel could be seen as a short-term buying opportunity.

Market Expectation 

Currently, the price appears to be coming from the upper boundary of the descending channel. For an unequivocally directional bias on the four-hour chart, EURUSD sellers might need to wait for the price to rally into the bearish order block before resuming the downtrend. Therefore, the market is expected to remain bearish until a successful breakout from the descending channel emerges to the upside.

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