EURUSD Analysis – Price Makes a More Deep Approach to the 1.07200 Significant Level
EURUSD sellers outweigh buying strength as the price currently loses its bullish momentum. The EURUSD is now making a deep approach to the 1.07200 significant level, which has been in place since the beginning of this month. This level has acted as an important support and resistance area for the currency pair over time. The sellers are currently dominating price action, pushing it lower toward this key zone with each passing day. The current market conditions suggest that selling power seems stronger than buying strength on the EURUSD charts due to its continuous downward movement from higher levels towards strong supports at 1.09930 and 10720 regions, respectively. Traders must keep watchful eyes while trading near these crucial areas before taking any decisive action either way.
EURUSD Key Levels
Resistance Levels: 1.09930, 1.05320
Support Levels: 1.00000, 1.07200
At present, traders should pay close attention to how well buyers can defend against any further bearish pressure from sellers at this critical juncture near the 1.07200 support level on the EURUSD chart. If buyers fail to take charge here, then we could see more selling pressure that would push prices even lower than expected levels in the days or weeks ahead. On the other hand, if bulls manage to hold their ground, then a bullish reversal could be seen soon enough, and we might expect some buying strength to return to the market again.
The money flow index is currently diving back below the 50.0 level. This shows that the bears still hold the direction of price flow. The sellers can successfully pitch their tenth at the 1.07200 key zone or even break lower beyond it. The Stochastic Oscillator is almost setting back to the oversold ground. This, therefore, indicates an end to selling strength. However, the sellers still appear to remain in charge on the daily chart.
The short-term traders keep gaining ground. On the 4-hour chart, the bears are close to hitting back toward the 1.07200 key zone. An increase in bearish momentum will result in more price flow as the dip continues below the significant 1.07200 level.
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