EURUSD Analysis – Price Remains Confined Between Significant Levels
EURUSD remains confined to continuing in a ranging pattern between significant levels. Though the market can be seen to have an affinity for breaking upward. Even as the price remains obedient to the uptrend line even in confinement. The price can be seen making a false breakout on January 12th, 2022, which lasted only 4 days before the market drops back and remains below the 1.13840 significant level.
EURUSD Significant Levels
Resistance Levels: 1.13840, 1.15180, 1.17130
Support Levels: 1.12360, 1.09900, 1.05320
Buyers have been seeking corrections ever since the 8% price drop that lasted from May 24th to November 24th, 2021. A strong weekly uptrend line has helped to prevent the price from dropping even lower under bearish pressure. The price is now in a period of accumulation, which is expected to lead to a strong upward movement. Already, there are signs of bullish agitation in the market.
On the RSI (Relative Strength Index) chart, the signal can be seen to make a steady, undulating recovery from an oversold condition, such that it bounces upward on its SMA period 14 line. And though EURUSD initially bounced above the 50-mark, it has dropped again below it at 48.92. This shows bullish endeavors by the market buyers. However, the bears still hold their influence to keep the price in confinement.
Market Prospects
On the 4-hours chart, the undulating nature of the market as it remains in confinement makes the MA (Moving Average) period 50 be on a sideways movement. But the false breakout of the market also sees a rise in the MA. However, the price has traded to the downside of the MA, implying that it now acts as a barrier to overcome. The RSI shows that the market is still abiding in the bearish half. Buyers are expected, however, to lift the market out of confinement and beyond 1.15180.
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