EURUSD Analysis – The Market Resumes Its Trend Downward
EURUSD resumes its market trend downward. The EUR currency has been falling against the USD currency since February 10, 2022. The fall began after a few months of indecision in the market as the bulls and bears struggled to keep the market order flow in one specific direction. As the bulls got beaten out of the market, the market dived downward. The higher momentum coupled with the Moving Averages (MA) Cross further confirmed the downtrend.
Market Major Zones
Demand Zones: 1.0170, 0.9600
Supply Zones: 1.0360, 1.0780
As prices dived downward, the previous support level at 1.0780 was broken. The impulsive move caused by the bear’s downward seemed to continue forever until the last support at 1.0360 was reached. The previous support drove the market upward towards the supply zone at 1.0780. As the market approached the supply zone, the bulls began to close their long positions, resulting in a more rapid downtrend from the supply zone.
The previous support level at 1.0360 was retested twice before it was invalidated by the new impulsive wave that began on June 27, 2022. As indicated by the Stochastic RSI indicator, the bears kept driving the market downward even in an oversold region until a correction began on July 14, 2022. Prices keep rallying upward to a Fibonacci retracement level as the market retraces against the motive trend.
On the four-hour timeframe, the market order flow had been bearish until the change in character on July 18, 2022. Currently, the bulls seem to be struggling to keep prices rallying upward as higher highs and higher lows become challenging to spot. The supply zone at 1.0360 and the Fibonacci retracement level at 0.618 are expected to lead the market downward till the swing low formed on July 27, 2022, gets broken.
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