EURUSD Market Analysis: Supply Zone Remains Intact at 1.140
EURUSD major supply zone remains intact at 1.1460. The major zone at 1.1460 was tested on the 7th of February. The zone remained intact as it successfully altered the bullish run. The major supply zone at 1.1660 was tested on the 28th of October. The bulls attempted to push through the supply zone for a bullish run. The supply zone held the price and hindered the bulls. This led to a false breakout above the 1.1460 zone. The breakout was immediately followed by a large bearish candle.
EURUSD Major Zones
Supply Zones: 1.1660, 1.1460
Demand Zones: 1.1150, 1.1520
Price dropped further as the moving average period 9 and the moving average period 21 guided the bearish run. The bulls struggled to create a reversal in the market. This failed as it led to a gentle upward slope below the 1.1460 supply zone. The gap created by the volatile bearish run was closed. The bears aggressively went short. The supporting trend line for the bulls was bypassed as the market dropped to 1.1150.
The market did not stay long in the supply zone. The buyers stepped in once again and pumped the price back to the supply zone, from where it came. The unresisted bullish daily candles appeared fit enough to surpass the supply zone. Upon reaching the zone, the bulls could only form wicks above the supply zone. The major supply zone remains intact without any violations. On the daily chart, the stochastic is currently moving away from the oversold region. This is a clear sign of bearishness.
The market is currently plunging from the supply zone at 1.1460 towards the 1.1150 zone. The bears are still very much active at the supply zone. On the four-hour chart, the moving averages have crossed and have changed direction. The market seemed to consolidate for a short period. The market structure has been broken and the bearish move is seen to abound.
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