EURUSD Market Analysis – The Market Is Faced With a Break and Retest of Its Trend Line
A break and retest of the trend line is visible on the EURUSD market. The market experienced a reversal on May 25, 2021, after climbing a trend line. The turnaround was characterized by a head and shoulders pattern. The Moving Average period of nine switched positions, sinking the price. There was also a break and retest of the trend line before the reversal.
EURUSD Major Market Zones
Supply Zones: 1.1900, 1.1530, 1.1460
Demand Zones: 1.1680, 1.1220, 1.1130
The bears plunged into 1.1900. A resistance zone was created above with retracement before the market reached the demand zone at 1.1900. The market obeyed the trend line through multiple zones as the bears ruled the market. There was consolidation during October last year just before an impulse move into 1.1220. The descending trend line faced a break and retest, which led to lower pricing below the 1.1220 demand zone. The market formed a new demand zone at 1.1130.
The demand zone caused an influx of buyers to drive up the price. Price did not respect the uppermost trend line. The market rallied above the trend line. The resistance zone halted the rally at 1.1460. The market retraced its steps back to the trend line. The EURUSD market is seeing a break and retest of the trend line.
What to Expect From EURUSD
The market has formed a cup and handle pattern on the four-hour chart. This is likely to lead to higher pricing by the bulls in the market. 1.1530 is likely to be the next aim of the bulls upon the break and retest of the descending trend line. The retracement to retest the trend line is expected to cause more buying pressure.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.