Price Downtrend, Support Strength
The EUR/USD price has recently experienced a bearish wave and is currently approaching a strong support zone. This support zone indicates a price level where buyers are expected to step in and provide upward pressure on the currency pair. Traders should pay close attention to the price action around this support zone, as it could potentially act as a catalyst for a bullish wave.
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
One indicator that supports the possibility of a bullish wave is the Relative Strength Index (RSI). The RSI is a momentum oscillator that measures the speed and change of price movements. It is commonly used to identify overbought and oversold conditions in an asset. In this case, the RSI is approaching the oversold area, suggesting that the selling pressure may be exhausted, and a potential reversal could be on the horizon. Another aspect to consider is the volume. Volume represents the number of shares or contracts traded during a given period. In this case, it is mentioned that the volume does not seem to be backing up the current trend. This lack of volume support suggests that the bearish wave may not be as strong or sustainable as initially perceived. It could also indicate a lack of conviction from market participants. To summarize, based on the provided information, traders can anticipate the start of a bullish wave if the RSI begins to show signs of a bullish trend before the support zone is broken. However, it is essential to wait for additional confirmation from other technical indicators or price patterns before making trading decisions. Furthermore, keeping an eye on volume can help gauge the strength of the potential reversal. As always, it is advisable to combine multiple indicators and conduct thorough analysis before making any trading decisions.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.