Market Analysis: The Bulls Remain Held Back
EURUSD buyers lack the tenacity for breakouts. The currency pair has been experiencing a period of stagnation, with buyers lacking the tenacity to initiate a breakout. For about a week, the market has remained in a silent phase. Also, the buyers have slowed down their selling pace, and the price has been consolidating.
However, a few days into the new year, sellers took control of the price after buyers hit the significant level of 1.11300. The bears saw an opportunity and initiated a plunge, piercing below the significant level of 1.10000. Since then, the market has been struggling below this key level.
EURUSD Key Levels
Resistance Levels: 1.11300, 1.1000
Support Levels: 1.08730, 1.05310
The buyers now hope to relieve the prevailing sell sentiment on the EURUSD currency pair. Considering that the buyers have been on the stronger side for months, it is plausible that they will eventually regain control. The buyers initially entered into bullish action following a price drop to the critical level of 1.04450 last year.
From this point, the bulls have maintained a strong rally, breaching through several key zones. However, the momentum indicator on the daily chart has waned, with the momentum signal declining below the 0.00 level. This decline in momentum explains the current struggle in price due to reduced volatility.
Nevertheless, the buyers could be building up pressure, as indicated by the Stochastic Oscillator currently in the oversold area. This suggests that the buyers may be preparing for a potential breakthrough.
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