EURUSD Analysis – Price Encounters Solid Opposition to Its Downflow at 1.12020
EURUSD encounters solid opposition to its downflow at the 1.2020 significant support level. Price broke the immediate price line before this support line on the 16th of November. A further pullback then crashed the market to the support level at 1.12020. EURUSD is immediately rebuffed as it encounters this significant level. In the next few days that follow, the market is left hanging between the two key levels as bearish pressure tries to match solid market support.
EURUSD Significant Levels
Resistance Levels: 1.22620, 1.19030, 1.17130
Support Levels: 1.15180, 1.13840, 1.12020
EURUSD began a decline after it hit a price line at 1.22620 that proved impenetrable. The market began a swift descent, falling below 1.20630 and 1.19030 till it found a foothold at 1.17130. And even that would be temporary as 1.19030 turned into a new resistance for the price. This then led to a further drop. A retest of 1.17130 finally sank the market through a more significant level to reach 1.12020.
The total price decrease from 1.22620 on the 1st of June to 1.12020 on the 24th of December stands at 8.60%. The market is now showing signs of a price rebuff at the solid support level. The Parabolic SAR (Stop and Reverse) has switched its dots underneath the daily candles on the 26th of December to show a definite uplift in the market. The RSI (Relative Strength Index) shows the same upward progress even though it has now stalled just below the 50 mark.
On the 4-hour chart, the bulls are seen to be making more progress. There was an initial bounce up using a double bottom pattern. The RSI line has crossed the middle level at 50 and the signal line is now in bullish territory. Currently, the price remains suspended between 1.13840 and 1.12020 as it keeps ranging.
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