EURUSD Price Analysis – December 06
EURUSD price may retest the previous low of $1.1206 support level, breaking it down may reduce the price to $1.1206 and $1.1103. Should the level of $1.1295 holds, the price may reverse and face resistance level of $1.1375 and $1.1432.
EUR/USD Market
Key levels:
Supply levels: $1.1375, $1.1432, $1.1514
Demand levels: $1.1295, $1.1206, $1.1103
EURUSD Long-term trend: Bearish
EURUSD is bearish on the long term outlook. The Bulls could not continue their bullish trend again after the retracement that took place on October 28 at $1.1684 resistance level. The Bulls lost the momentum and a bearish engulfing candle pattern formed at the same level on October 29. The $1.1615 and $1.1514 levels were broke downside with the strong bearish candles. The EURUSD has tested the support level of $1.1206. Last week, the Bulls were initially in control of the market but towards the closing of the market the Bears prevailed; thus, the daily candle turned to inverted pin bar.
The EURUSD price is currently trading below the 9 periods EMA and 21 periods EMA in which the former is making attempt to cross the later upside. The relative strength index period 14 is at 40 levels and the signal lines pointing down to indicate a sell signal. EURUSD price may retest the previous low of $1.1206 support level, breaking it down may reduce the price to $1.1206 and $1.1103. Should the level of $1.1295 holds, the price may reverse and face resistance level of $1.1375 and $1.1432.
EURUSD medium-term Trend: Bearish
On the medium-term outlook, EURUSD is bearish. The price broke out at the $1.1514 support level with the aid of bears’ pressure, it was pushed down to the support level of $1.1206 level on November 25. The pair observed a pullback and retested the previous high but unable to break up the $1.1375 level. The Bears are still in control of EURUSD market at the moment.
The relative strength index period 14 is at the 50 level and the signal lines pointing up to indicate a buy signal. EURUSD is trading around the 21 periods EMA and 50 periods EMA.
