EURUSD Analysis – Buyers Are Making Gains in the Consolidation State
EURUSD continues to trade in the corner. The currency pair has been trading in a narrow range lately, with no significant movements to report. This has left many traders wondering about the current state of affairs. Since March 2023, the sellers have been quiet, and the market price action has been contained within the Bollinger band indicator. However, the bears still have a chance of recovering in the coming days. Currently, the buyers are making gains in the consolidation state. This could lead to a change in events, allowing sellers to influence the EURUSD price. Despite the lack of movement, the market remains uncertain, and traders should exercise caution when making any decisions.
In February 2023, selling actions were initiated from the 1.09910 key zone, leading to a change in the price trend after a prolonged season of buying action from the year 2022. The price continued to decline until the significant level of 1.07420 was broken. Despite a further push, the currency pair has only been effective down to the 1.05410 key level.
EURUSD Key Levels
Resistance Levels: 1.09910, 1.07420
Support Levels: 1.05410, 1.0000
Although the currency pair has failed to surpass the 1.05410 key zone for the past few weeks, the Money Flow Index indicates that bearish liquidity flow is still present in the market. This suggests that there is still an opportunity for a bearish season, despite the current price action being cornered. As buyers continue to gain strength back to the 1.07420 market level, traders should be vigilant for a sharp reversal at that point in the market.
On the 4-hour chart, the price is in a range, but the sellers have control over the liquidity flow. Buyers are struggling to fill the pool created by selling actions. This indicates that the market is likely to be bearish in the next few trading hours after the price reaches the 1.07420 key zone. Traders should prepare for selling actions in the market.
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