EURUSD Analysis – Buyers Stage a Fight Back Admist Drop
EURUSD has the potential for bullish momentum despite setbacks. Despite facing some setbacks, the EURUSD pair still holds the potential to flex its muscles and regain strength. Bears have been on a definite pursuit even before the new year began. The euro experienced a loss of gains as buyers halted their purchases at the significant level of 1.11520. The lack of bargaining power led to the closure of buying positions, showcasing the weakness of the buyers.
EURUSD Key Levels
Resistance Levels: 1.29141.00, 1.11520
Support Levels: 1.07230, 1.05310
Over the past few months, the euro market has maintained a strong balance against the USD. Above the 1.05310 price level, buyers established control of the market, and since then, the bulls have been charging north. Currently, the market is consolidating above the significant level of 1.08780. If the price retraces back to the trend line, the bulls can potentially reenter the market for another upward swing.
The MACD (Moving Average Convergence and Divergence) indicator shows the wave signal still in the positive region. This indicates that buyers may still influence the market. On the other hand, the Money Flow Index indicator has dipped below the 40.0 level. It therefore demonstrates the extent to which bears have mobilized price liquidity in recent days.
However, the bulls still have the potential to ignite their trend and push forward in the market. In the short term also, the buyers are more likely to set onto the stage for another ride.
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