EURUSD Price Analysis – May 02
An increase in the bears’ pressure may lead to the breakdown of the support level of $1.04, then, price may decrease to the support level of $1.03, and it may decrease to $1.02 levels. Failure to break down the support level of $1.04 by the bears, the price may experience a breakout at $1.05 resistance level which may extend to $1.06 and $1.07 levels.
EUR/USD Market
Key Levels:
Resistance levels: $1.05, $1.06, $1.07
Support levels: $1.04, $1.03, $1.02
EURUSD Long-term Trend: Bearish
On the long-term outlook, EURUSD is bearish. EURUSD reached the high of $1.11 level on March 30. A candle pattern called bearish engulfing formed at the same level. The price decline to the support level at $1.07. A short ranging movement was observed at the just mentioned level. The sellers’ momentum increased and it break down the support level of $1.07. The price is currently declining towards the support level at $1.04.
The currency pair is trading below the 9 periods EMA and 21 periods EMA which indicate an increase in the bearish momentum. An increase in the bears’ pressure may lead to the breakdown of the support level of $1.04, then, price may decrease to the support level of $1.03, and it may decrease to $1.02 levels. Failure to break down the support level of $1.04 by the bears, the price may experience a breakout at $1.05 resistance level which may extend to $1.06 and $1.07 levels.
EURUSD medium-term Trend: Bearish
EURUSD is bearish in the medium-term outlook. The price was on the ranging movement on the 4 hour chart, within the $1.09 and $1.07 price level last week. The bears prevailed over the bulls on April 25 and the price break down the $1.07 price level.
The price is trading below the 9 periods EMA and 21 periods EMA, the two EMA are distance to each other as an evidence of bearish market. The relative strength index period 14 is at 37 levels with the signal line pointing downside indicating a sell signal.
