EURUSD Analysis – Price Is Pulling Back to the 1.16600 Significant Key Level
EURUSD is pulling back as the market continues to fall. The price has currently been in a long bearish trend movement, making lower highs and lows. The market has just broken out of the ranging price levels of the 1.19000 and 1.16600 significant key levels and is now looking to retest the 1.16600 significant key levels before continuing to fall.
EURUSD Significant Levels
Resistance Levels: 1.22600, 1.19000
Support Levels: 1.19900, 1.16600
The bearish market first began as the price was seen ranging between May and mid-June. The bears then gained bearish momentum and breaks price downward. This implies that the sellers are now in control of the market and the distribution is a bearish phase. The market then went down to 1.19900, where price retested this level before going down again.
Price also went low and broke through the 1.9000 significant level. However, the price also pulled back to this level. The market then begins to consolidate between the 1.9000 and 1.16600 significant key levels, before it finally breaks out. EURUSD, however, is expected to start pulling back to the 1.16600 significant level before its bearish continuation. The MACD (Moving Average Convergence and Divergence) indicator shows price movement below the lower region. This indicates that the bears are still in control.
On the 4hour chart, the market is trending lower, breaking through important key levels. As the bears continue to gain more momentum, the price continues to make lower lows and highs in a downtrend. The MACD shows the bull's gathering position as it is set to retest the 1.16600 significant key level. The Parabolic SAR (Stop and Reversal) also shows dots rising as it continues to start pulling back to the key level before bearish continuation.
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