EURUSD Analysis – price finally breaks out of the descending channel upward
EURUSD finally breaks out of the descending channel upward. As if the European currency would always continue to depreciate against the US dollar, the market remained within a descending channel for months without even experiencing a fake-out.
EURUSD Major Zones
Demand Zones: 0.96320, 0.95320
Supply Zones: 1.01870, 1.14950
Before the emergence of the descending channel, the market consolidated just below the 1.14950 resistance. This consolidation was confirmed by the Moving Average Cross (MA Cross) as it whirled about a price level for weeks. Amidst the struggle between the bulls and the bears, EURUSD hit the 1.14950 resistance and crashed algorithmically downward. The descending channel emerged on the 4th of February 2022 after the 1.14950 resistance level was hit. The price continued within the descending channel as it rendered all support levels along its way weak and irrelevant.
EURUSD was seen gyrating around the previous support at 1.01870 in July 2022. This was due to the purchasing power around this level. Since the market was not yet oversold, the bears raided the market with their sell orders and crashed the market further. The 1.01870 level was broken and retested as prices headed into an oversold region. On the 13th of October, 2022, a midterm low was created in the prospect of the failure swing that broke the descending channel upward into a bearish order block. This bearish order block was created due to the delivery in price to the downside on the 13th of September, 2022.
When the price hits the bearish order block, it heads down as expected. The four-hour time frame might post bearish until the bulls find a re-entry within the discount arrays. The previous low at 0.96320 is expected to remain intact and not broken before EURUSD resumes its uptrend.
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