EURUSD Analysis – The Bears Are Still Ready to Flex Muscle Below the 1.05360 Psychological Level
EURUSD’s selling strength takes a breather at the 1.05360 psychological level. The EURUSD currency pair has been on a strong bearish trend in recent weeks, with the sellers pushing the price lower. However, the sellers have recently taken a breather at the 1.05360 psychological level. This key zone has been a strong resistance for the pair, and the sellers have reduced their bearish pressure upon arrival. This provides an opportunity for prices to consolidate in the market for a while. The buyers are now trading against selling pressure as we speak, and the bearish trend is still aligned to fall lower in the market.
EURUSD Key Zones
Resistance Zones: 1.00940, 1.07450, 1.02420
Support Zones: 1.05360, 0.96959, 1.0000
The buyers and traders have successfully fulfilled their mission of taking the price level back to the 1.09940 key zone. This was a difficult task as the bearish pressure was strong in May 2022, pushing the price lower to the psychological level of 0.96950. However, the bulls were able to drive the market strength back up to the 1.09940 key zone. Surprisingly, the buyers were unable to break through the key level, and this has resulted in the current selling buildup. The sellers are now targeting a sell trend following the market reversal at the 1.09940 key zone. This could potentially lead to a bearish trend in the market, which could result in a further drop in prices.
The Bollinger Band pressure is directly charged towards the negative gradient of the chart, indicating that the sellers are likely to build more momentum lower. It is important to note that this current encounter at the 1.05360 key zone does not necessarily mean that the bearish trend will reverse. However, it does provide a chance for the buyers to gain some ground in the market. Therefore, traders should be aware of the potential for a short-term bounce in the pair but should also remain vigilant of the overall bearish trend.
The MACD (Moving Average Convergence and Divergence) and Parabolic SAR (Stop and Reverse) indicators are two of the most important technical analysis tools used to identify trends. Both indicators have recently been projecting a bearish sentiment in the short time frame, suggesting that the market is likely to move lower shortly beyond the 1.05360 key zone.
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