EURUSD Daily – Are the Bears starting to gather?

Theunis Kruger

Stock photo of a man with currency symbols

Commodity forex trading technical analysis concept

The EURUSD currency pair on the D1 time-frame was in a protracted uptrend until 18 August when a higher top was reached at 1.19649. Sellers found the price attractive and supply started overcoming demand.

After the higher top at 1.19649, the price navigated downwards through the 15 Simple Moving Average until August 21 when a possible support level was reached at 1.17535. Increased demand cause the price to go up again.

Although neither the 34 Simple Moving Average nor the Momentum Oscillator has crossed yet, a possible lower top might be forming as the Bears gather again after having been dominated by an exceptional three-month-long bullish move. A lower top is a warning for technical traders that a likely price reversal might be in progress.

If the Bears can gather in significant enough numbers and the price breaks through the critical support level at 1.17535, then three possible price targets may be calculated from there. Applying the Fibonacci tool to the support level at 1.17535 and dragging it to the top of a possible resistance level that might be forming at 1.19285, the following targets could be considered. The first target can be projected at 1.16453 (161 %) and the second price target might likely be at 1.14703 (261.8%). The third and final target may be expected at 1.11872 (423.6%) if the downtrend continues.

If the 1.19285 potential resistance level is breached, the bearish scenario above is invalidated and will need to be reassessed.

If sellers can maintain a negative sentiment and supply overwhelms demand, the outlook for the EURUSD currency pair on the Daily time-frame might become Bearish.

EURUSD chart showing the price trending up before stabilising

For more information, please visit: FXTM



Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Theunis Kruger

Latest news

MetaTrader MT4 and MT5 Disappear From Apple’s App Store
Social media is abuzz regarding reports that MetaQuotes apps have been removed from the Apple App Store. Read more
The New Crypto Scams To Look Out For After ‘The Merge’
After six years of delays, Ethereum’s ‘The Merge’ has finally been completed. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
#5 Plus500 Forex broker logo72 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker

    Forex Fraud Certified Brokers

    Plus500 Small Logo
    skilling logo
    BlackBull Markets Logo
    City Index Logo
    IC Markets Logo
    ATFX Logo
    OctaFX Logo
    AvaTrade logo Logo
    XM Logo
    IQ Option Logo
    Exness Small Logo
    HYCM Logo
    LegacyFX Small Logo