EURUSD Analysis – Market Shows Signs of the Trend Change to the Upside
EURUSD shows signs of the trend change to the upside. Since late last month, both bears and bulls are currently experiencing a tug of war as the market’s overview becomes bi-directional. Before this tohu-bohu in the market, EURUSD had been declining in price while respecting diagonal support.
EURUSD Significant Zones
Demand Zones: 0.9220, 0.9600
Supply Zones: 1.0000, 1.0350
The emergence of the descending trendline on the 7th of May, 2022, brought about the execution of more sell orders into the market. This was due to the determination of the bears to ride the trend downward. The market was making downward expansions at specific premium arrays when prices kept breaking old lows. On the 13th of May, 2022, EURUSD bounced off the descending trendline and broke the market structure upward. But the intention of the bulls to drive the market higher proved abortive as prices reached a premium zone.
EURUSD appears to have only made significant retracements at oversold levels. Since March 2022, the oversold indications by the Relative Strength Index (RSI) have been quite important to market participants as price retraced into premium to give the bulls long-entry. The highs formed on August 11 and September 12 are currently the last two swing highs in the market. As the price approaches the premium zone of the current trading range, the market has just reacted to a daily bearish order block.
Market Expectation
Ever since the market structure shifted on the 28th of September 2022, prices have remained in an upward trend. Should the psychological level at 1.0000 get broken, EURUSD might keep rallying upward into the daily bearish order block, after which a retracement or reversal will most likely occur.
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