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Sellers starting to build on the EURUSD?

jeffriess
January 14, 2020
by Joseph Jeffriess, Market Analyst

Price action suggesting sellers might be building.

Looking at the daily EURUSD chart we can see a few price action signs that suggest sellers could be building in numbers while buyers could be running out of momentum.

Let’s take a look at the current daily EURUSD chart to check out the current price actions signs.

First, we can see that the market remains in a medium-term uptrend, the area we’re focusing on is the 11 bars of trade. Price made an impressive rally setting a new HH before sellers took price lower and defeated buyers on their single rally taking price back to test support. The 2nd extension lower broke the fast trend, the newest rally has failed (so far) to move back above the fast trend line setting up a new lower high.

Looking at today and yesterday, buyers have failed for a 2nd time to hold a move above 1.1144, while this level holds and if sellers are able to break below 1.1128, we could see a new extension lower. Possible target depending on seller momentum could be a retest of the support area below at 1.1090/1105. A break above 1.1144 cancels out current signs for now.

Good trading from Eightcap.
All times are AEDT.