EURUSD Analysis – Buyers Set to Storm the Market
EURUSD’s selling momentum declines as the market eyes a potential pullback. The overall bearish trend has commenced since the rejection at $1.11390 resistance. The market is currently undergoing a temporary pause in the bearish momentum, with a potential pullback into the premium zone. A further downward movement following the pullback is, however, likely as the overarching trend for EURUSD remains bearish.
EURUSD Key Levels
Resistance Levels: $1.08850, $1.11390
Support Levels: $1.06860, $1.04480
The currency pair has been entrenched in a bearish trend since the market faced significant selling pressure at the $1.11390 resistance level, resulting in a sharp decline. This was followed by a CHoCH (Change of Character) to the downside at $1.07240. Currently, the market is trading within a range bounded by the supply zone at $1.08850 and the demand zone at $1.06860. Recent price action indicates a potential pullback into the premium zone following a buy-side liquidity grab above the $1.09320 high.
However, despite this temporary upward movement, the overall bearish sentiment remains dominant. Technical indicators such as the RSI (Relative Strength Index) suggest that the market is oversold, supporting the notion of a pullback. The SMA (Simple Moving Average) also indicates that a pullback to the upside is currently ongoing. However, a resumption of the bearish trend is expected as the price approaches the premium zone. 
Market Expectation
EURUSD is heading into the premium zone as the breaks in structures to the upside continue. Before the change in market sentiment on the four-hour chart, EURUSD exhibited a clear bearish order flow. The recent shift occurred around the $1.06600 level, suggesting a potential reversal in the short term.
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