EURUSD Price Analysis – August 05
There is a tendency for the price to reverse at the demand level of $1.1119 in case the Bulls defend the level. Should the Bears exert more pressure, the level may give way and the price decrease further to $1.1035 level
EUR/USD Market
Key Levels:
Supply levels: $1.1237, $1.1299, $1.1349
Demand levels: $1.1185, $1.1119, $1.1035
EURUSD Long-term trend: Bearish
On the long term outlook, EURUSD is bearish. The Bears were in control of the EURUSD market throughout last week. The bearish momentum pushed down the price to the low of the demand level of $1.1035. A strong pin bar daily candle formed at the mentioned level; which indicates a bullish reversal movement. Followed the pin bar was the formation of a daily bullish candle. Today, a strong massive bullish candle emerged and broke up the former resistance level of $1.1185.
The 21 periods EMA has been broken up and the price is touching the 50 periods EMA which indicates that the Bulls are gradually taking over the EURUSD market. The price is trading currently in-between the two EMAs. The Stochastic Oscillator period 14 is above 20 levels with the signal lines pointing up which indicates buy signal. Further increase in the Bulls pressure will break up the 50 periods EMA and the resistance level of $1.1237, the price may reach $1.1299 price level. In case the confluence at $1.1237 level holds the price, it may consolidate for a short period.
EURUSD medium-term Trend: Bearish
On the medium-term outlook, EURUSD is Bullish. The currency pair bottomed at the demand level of $1.1035 last week. A morning star candle pattern formed at the level and the price reversed towards the north. The former supply levels of $1.1119 and $1.1185 were broken up and the price exposed to the supply level of $1.1237.
The stochastic Oscillator period 14 is above 80 levels and the signal lines pointing up which indicates buy signal and a further increase in price.
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