The EUR/USD currency pair, on the D1 time-frame, was in an upward move until the 25th of June when a higher top was recorded at 1.14122. Selling pressure overwhelmed buying pressure as the bears started to find the price attractive.
A closer look revealed that the Momentum Oscillator displayed negative divergence between point a and b compared to the price at 1.13479 and 1.14122. This could have alerted technical traders to a possible reversal in the making.
After the high at 1.14122, the price broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline and a possible crossing of the 15 and 34 Simple Moving Averages, called a Death Cross, might be in progress. All of these further strengthens a possibility technical reversal in progress.
A likely critical support level formed when a bottom was recorded at 1.11928 on the 9th of July. Buyers tried to push the market higher but supply overcome demand with a Shooting Star Candle forming at 1.12863 on the 11th of July.
If the EUR/USD breaks through the critical support level at 1.11928, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 1.11928 and dragging it to the top of the last pullback at 1.12863, the following targets may be calculated. The first target can be anticipated at 1.11351 (161 %). The second price target can be predicted at 1.10416 (261.8%) and the third and final target may be expected at 1.08903 (423.6%).
If the top at 1.12863 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the EUR/USD currency pair on the D1 time-frame will remain bearish.
A closer look revealed that the Momentum Oscillator displayed negative divergence between point a and b compared to the price at 1.13479 and 1.14122. This could have alerted technical traders to a possible reversal in the making.
After the high at 1.14122, the price broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline and a possible crossing of the 15 and 34 Simple Moving Averages, called a Death Cross, might be in progress. All of these further strengthens a possibility technical reversal in progress.
A likely critical support level formed when a bottom was recorded at 1.11928 on the 9th of July. Buyers tried to push the market higher but supply overcome demand with a Shooting Star Candle forming at 1.12863 on the 11th of July.
If the EUR/USD breaks through the critical support level at 1.11928, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 1.11928 and dragging it to the top of the last pullback at 1.12863, the following targets may be calculated. The first target can be anticipated at 1.11351 (161 %). The second price target can be predicted at 1.10416 (261.8%) and the third and final target may be expected at 1.08903 (423.6%).
If the top at 1.12863 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the EUR/USD currency pair on the D1 time-frame will remain bearish.