EURUSD Analysis – Sellers Storm the Market From a Significant Zone
EURUSD sellers storm the market from a significant zone. Coming from a pool of buy orders, the EURUSD ascended in fractals until the significant zone around the 1.0360 price level was reached. This significant zone was enacted by the weekly bearish order block, which appeared as a consolidation on the daily chart.
EURUSD Significant Zones
Demand Zones: 0.9980, 0.9540
Supply Zones: 1.0360, 1.0790
Following the enhancement of the market into the consolidation region, the price was aggressively rebuffed to the downside. The EURUSD sellers seemed to be so sure about their take as three black soldiers mobilized themselves against the bulls. After breaking the 1.0790 resistance on April 25, 2022, EURUSD stayed within two significant levels in the market until July 2022. During the period of the stay, a double bottom was enacted at the 1.0360 price level on June 15, 2022. This double bottom was later invalidated, and the price crashed deeply into an oversold region.
EURUSD recovered almost immediately from the oversold region. This recovery was hastened by the buying pressure around the demand level of 0.9980. Since the recovery, EURUSD has never been oversold, but another massive crash is approaching in September 2022 approaches. On September 28, 2022, the price bounced off the demand level at 0.9540. The price reaction at this demand level brought about a market structure shift to the upside. The market structure shift to the upside drew more EURUSD buyers into the market, while EURUSD sellers fled until recently.
The market now heads downward on the four-hour chart due to the repulsion at the daily Point of Interest (POI). The reaction expected at the four-hour POI is either a reversal to continue the uptrend or a retracement in favor of the EURUSD sellers.
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