Market Analysis – Bearish Pressure Keeps EURUSD Sliding Downwards
EURUSD keeps sliding downwards under the influence of the bears. The market uptrend had been halted when bulls failed to break the guard of the 1.22700 resistance level on the 26th of May 2021. Soon enough, a downtrend kicked in due to continued bearish pressure. By the 16th of June, the market dropped abruptly past all the support levels till it landed at 1.184.00, where it began sliding downwards.
EURUSD Important Levels
Resistance Levels: 1.18400, 1.19100
Support Levels: 1.17560, 1.17100
When the market touched down on the 1.18400 key level, bulls revived and started to lift the market immediately, but they met resistance around 1.19600. This resistance level happens to coincide with the upper border of a descending channel. Therefore, price dropped and started to make consistent lower highs and lower lows. It was not until the 29th of July when buyers pumped the market again to reach the upper border of the channel.
At the border level, EURUSD broke through it but bullish energy failed at 1.19100. After some more trials, the market slumped back into the channel. Another bullish effort was made on the 13th of August, but it was terminated halfway up the channel, below the midline of the Bollinger Band indicator. After dropping around 1.16550, buyers have launched a new strong bullish effort to arrest the downward slide of the market. Price is now trying to negotiate its way beyond the channel’s upper border.
Market Prospects
Price ascended into the upper half of the Bollinger Band on the 23rd of August 2021 on the 4-hour chart. Since then, the Bollinger upper half has been channeling the market in a gradual upward direction. Price has now reached the upper border of the channel and is trying to break out. The Stochastic Oscillator has its signal lines already at the edge of the overbought region, which means that a fall is now imminent.
Price is predicted to fall to 1.16200 to continue its downward sliding.
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