EURUSD Price May Retest Previous Low Support Level at $1.07 Provided $1.09 Level Holds Not

EURUSD Price Analysis – April 04

Inability to break down $1.09 support level by the bears may result to further price increase towards $1.11, $1.14 and $1.16 resistance levels. Should Bears push the price to penetrate the support level of $1.09, price may decrease towards the support level of $1.07 and $1.06 support levels provided $1.09 does not hold

EUR/USD Market

Key Levels:

Resistance levels: $1.11, $1.14, $1.16

Support levels: $1.09, $1.07, $1.06

EURUSD Long-term Trend: Bearish

On the long term outlook, EURUSD is bearish. Last week, Bulls dominated EURUSD market. The currency pair tried to break up the resistance level of $1.11 but the bears opposed the movement with the formation of bearish engulfing candle. At the moment of writing this report, the price is declining towards the support level of $1.09.

EURUSD is penetrating the 9 period EMA and the 21 periods EMA downside, it is trading below the two EMAs which indicate an increase in the bears’ momentum. Inability to break down $1.09 support level by the bears may result to further price increase towards $1.11, $1.14 and $1.16 resistance levels. Should Bears push the price to penetrate the support level of $1.09, price may decrease towards the support level of $1.07 and $1.06 support levels provided $1.09 does not hold.

EURUSD medium-term Trend: Bearish

EURUSD is bearish on the medium-term outlook. The bulls took over EURUSD market on March 07 at the support level of $1.07 and the price increases to the resistance level of $1.11. It pulled back to retest the previous low on March 28. It consolidates for few days and the bulls gained momentum to have a partial breakout on March 30. The bears interrupt the bullish movement. The price is decreasing at the moment. The bears are increasing their pressure to break down barrier at $1.09 level.

The fast moving EMA has crossed the slow moving EMA and the price is trading below the 9 and 21 moving EMAs. The Relative Strength Index period 14 is at 34 levels with the signal lines pointing down to indicate a sell signal.