After a battle between bulls and bears, we finally see EURUSD battle at the support level of the monthly and weekly timeframe. These time frames have a major impact on the movement of the price for the pair. Given the support level is of higher impact, we will be looking for a H4 bullish structure, which it is forming with higher highs and higher lows. Right now, market is at the resistance level so we need to wait for the market to retrace and at this level, we will have the market sentiment towards the bullish side.

The descending trendline has been broken out for buys and has been validated by price action of candles opening and closing above. This futher confirms our bullish buys for the higher time frame confluence.

The golden retracement area stands still at the 1.0440 price point which also happens to be the near support level. This level will stand still and will have a major bounce from this level.

EMA 50 is bullish after being broken out for buys and is due for a retest at the support level, whereas, the EMA 200 is still above the market prices and may test the EMA before further breaking it up towards the upside. 

The oscillators are in an over bought region for the RSI and CCI. These both need to be neutralized at the support level. That being said, we see a window towards the downside before the EURUSD continue moving up. The downside should be limited to the neutralized levels. 

EURUSD has started its bullish move from a very key level. This key level tends to be the major trend support on monthly where market last reached 10 years back.

EURUSD bounce from monthly support finally

May 19 2022

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