EURUSD key zones:
Supply zones: 1.23500, 1.21500
Demand zones: 1.20000, 1.17000
EURUSD once again has failed to make a higher-high on the daily time frame. It closed the week on Friday with a large bearish candle failing to break through the resistance at 1.21500. EU rallied aggressively after it dropped into support at 1.17000 on the 31st of March.
Expectation From EURUSD
EU is showing a willingness to drop as it bounced off the bearish trend line lower.
The 9MA (Moving Average) which was lying below the candles’ bodies since the 5th of April smashed right between Friday’s bearish candle. The Moving average is showing strength to dominate subsequent candles as price falls lower.
The RSI (Relative Strength Index) is at point 53 at the time of writing. The RSI made a reversal on the 29th of April when the pin bar was formed projecting lower prices.
On the four-hour chart, the rally is clearly expressed. The rally of the previous support zone at 1.17000 comes to a sudden halt as the ascending channel is stopped by the higher time frame downward trend. A breakout lower is seen at the end of the ascending channel. Price is currently reaching for the next support zone at 1.20000. The support zone might prevent price from dropping lower and propel price to the next resistance zone at 1.21500. If the downward trend breaks the support zone at 1.20000, price would likely draw lower to the next major support zone at1.17000.
The Moving Average on the four-hour chart is seen just above the candles showing the drop in price since the 30th of April. The trend shows the weakening of the Euro against the Dollar.