EURUSD Analysis – Market Makes Signs of Trend Change as It Hits the Demand Zone
EURUSD makes signs of trend change as the market hits demand zone at 0.9950. Since May 2021, the sellers have been in charge of the market. The market has been forming lower highs and lower lows since May 25th, 2021. With the Parabolic SAR indicating both the impulsive and corrective waves, EURUSD continues to break the market structure downward without regard to the supports.
EURUSD Major Levels
Demand levels: 0.9950, 0.9610
Supply levels: 1.0370, 1.0790
As the euro continues to fall against the US dollar, it appears that the buyers have been successfully squeezed out of the market because they have no opportunity to change the market environment. On the 12th of May, 2022, a few days after the previous demand level at 1.0790 was rejected, the level was broken and EURUSD crashed further into discount.
The previous demand level at 1.0370 struggled to reject price upward after three consecutive tests of the level because the EURUSD environment remains bearish and the sellers are not ready to take profits. The level’s failure to hold price upward gave more sellers an opportunity to storm the market into the demand zone at 0.9950.
The EURUSD overall trend has been bearish since the occurrence of the shift in market structure a few days after the high was formed on the 13th of August, 2022 in the four-hour time frame. The market is expected to balance the inefficiency in the market as it continues its trend into the demand zone. Should the fair value gap on the four-hour time frame be invalidated, a change in the market environment is expected to happen, and all significant levels are expected to act as retracement levels as the EURUSD rallies upward.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.