EURUSD Analysis – Price Is Displaying a Bearish Movement
EURUSD is likely to defy the 1.06350 market level. The price continues to face bearish sentiment, with sellers gaining momentum and buyers weakening. On the daily chart, it becomes apparent that sellers are poised to dominate this week. Their increasing pace has put pressure on the buyers, resulting in the EURUSD displaying a robust bearish sentiment.
EURUSD Key Levels
Resistance Zones: 1.09760, 1.08200
Support Zones: 1.06350, 1.05210
Last week, the market temporarily closed higher as buyers attempted a retracement above the significant 1.06350 level. However, the bearish tendency gained strength when the Moving Average of days 9 and 21 crossed, signaling a bearish trend.
This sell-off commenced at the 1.09760 significant level and has persistently broken through other key zones. Currently, the sell traders are eyeing the crucial 1.06350 level, with the buyers likely to exhaust their strength. The bears appear determined to defy the 1.06350 market zone.
Despite the prevailing bearish sentiment, it’s plausible that buyers could regain some strength in the near term. This week may witness a temporary respite for buyers before a potential bearish purge. The Stochastic Oscillator Indicator, currently stuck in the oversold region, implies that buy traders could exert influence on EURUSD.
However, the Moving Average crossing acts as a resistance line as the price continues its southward trajectory. Ultimately, the bears are expected to strengthen further and potentially breach the 1.06350 market zone.
Turning to the 4-hour chart, it’s evident that the market retains a bearish setup despite occasional buy retracement attempts. EURUSD’s price action suggests a possible descent towards the 1.05210 market level.
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