EURUSD retraces towards the imbalance after its downward motion. The EURUSD market has been in consolation. The bears pulled through the demand zone on the 29th of September. The zone was tested earlier on August 20th. The bears failed initially to push through. After the violation of the zone, there was a retest beneath 1.1660. The previous demand zone functioned as a supply zone to send the price lower.
EURUSD price tanked further till it reached 1.1200. The market was trading in a range of 1.1320 to 1.1200. During December, the market was totally without prominent direction. This was evidenced by the Moving Average as it rested on the candles. The market was also characterized by little volatility. The market created a false move outside of the 1.1320 zones. The shallow price pump appeared to be a momentary retracement in the overall bearish market. The market moved towards the imbalance after the zone.
The market was expected to retrace to 1.1320. Rather than a retracement, the market sank into 1.1200 and beyond. The Moving Average switched positions to the upper side of the candles above the zone. This led to the prevalence of the downward motion. The market retraces towards the imbalance after the downward motion. A large bullish candle has formed after a large indecision candle below the zone.
EURUSD Short Term Trend: Bearish
The market is below the 0.382 level on the Fibonacci retracement. The market is expected to retrace further above the 0.5 level. The retracement is almost complete as the imbalance is almost filled up. The market is expected to continue in a downward motion to the 1.1200 zone after filling the imbalance.
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