EURUSD Analysis – The market order flow remains bearish
EURUSD market order flow remains bearish. Until the double top was formed on May 26, 2021, the market had been bullish. On the 6th of February, 2021, the market hit its local high, and since then, prices have been trending downward with lower highs and lower lows.
Market Major Levels
Resistance levels: 1.0800, 1.1520
Support levels: 0.9620, 0.8560
Ever since the formation of the double top followed by the downtrend indication given by the cross of the Moving Averages (MA), the market order flow has been bearish. Prices seem always to retrace and form a swing low every time the Relative Strength Index (RSI) indicates that the market has entered an oversold region. Breaks and retests of previous supports confirmed that the bears remain in control of the market.
On the 27th of May, 2022, the resistance level was at 1.0800, a few days after it stopped being a support. The retest further confirmed the bearish market order flow as lower highs, and lower lows are being formed. Due to the market imbalance, EURUSD kept trending downward. An order block was formed. The order block or the resistance level of 1.0800 is expected to serve as a supply zone to keep the market in a downward trend.
On the four-hour timeframe, the market order flow is expected to remain bullish until a change of character (CHOCH) or a shift in market structure occurs and the market flips bearish. Apparently, on the four-hour timeframe, another order block can be found inside the daily timeframe order block. Since it will take a very large volume of buy orders to invalidate the order block, it is expected that the market will continue its downward trend immediately if the price hits this order block below the resistance at 1.0800.
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