EURUSD Analysis – Price is approaching a downtrend as it rebounds from 1.19090
EURUSD is approaching a downtrend as the price is assumed to make a rebound at the 1.19090 key level. This level, however, is seen to have been retested twice. The downtrend phase started when the price first breaks through 1.9900 and then retested. The market is then seen to go lower, breaking below 1.19090 before making several rebounds at this level.
EURUSD Significant Zones
Resistance Levels: 2.22520, 1.19090
Support Levels: 1.16600, 1.99000
The market, however, making a rebound at this significant level, created a lower high. This high then becomes a significant zone as the price seems to retest it. The price then went down to the 1.16600 support key level before a pullback occurred. EURUSD is then assumed to be approaching the 1.19090 significant key level as a downtrend is assumed to hold.
On the 1day chart, the Stochastic Oscillator indicator crosses above the overbought region. This indicates that the market's direction will change. The bears, on the other hand, will soon seize control of the market. As sellers continue to put pressure on the downtrend market, the price may land above 1.16600. The RSI (Relative Strength Index) indicates that the signal line is near the overbought region. This also implies that the market is in a downtrend.
On the 4-hour chart, there seems to be a rejection at the 1.19090 significant key level. This shows that the bullish momentum is over and the bears are now in control. Price is seen as making higher highs and lows. The stochastic Oscillator is seen going down to the 50.00 level.
The RSI is also the overbought region as the market is set to start approaching a downtrend. EURUSD is, however, set to assume a downtrend phase as more rejections are seen at the 1.19090 significant key level. The price may fall back to 1.16600.
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