September 2, 2022 15:24:59
EUR/USD pair turns positive on Friday. After a pessimistic start, the pair gained positive traction and scaled higher with bullish momentum. The spot is consolidating in a short-term range of $0.9910-1.0050 since August 19.
However, the overall trend remains bearish. But, some dip buying opportunity is emerging near the mentioned demand zone.
On the four-hour chart, the asset has depreciated almost 4% from the swing highs of 1.0364 made on August 11. The descending trend line acted as an upside barricade for the prices. The selling remains quite intensive as the sellers did not give any chance to breach or even test the bearish trend line.
In addition, the sell side is favored as the buyers remained pressured below the 21-hour exponential moving average (EMA) since August 12. However, the buying participating near the supply zone made the price breach multiple times and spotted marginal gains.
Following the same pattern, the price traded above the moving average on September 2 with strong buying momentum as shown by the big green candlestick. There is a higher possibility of gaining further gains toward the upper trading zone at 1.0075 in near future.
The RSI (14) trades above 50, which indicates bullishness.
In contrast, a slippage below 0.9990 on the daily basis would vanish any bullish hope and the price continues to trade lower. If that occurs, we expect the price to fall back to the downside trend line at 0.9930-0.9910.
Although Moneta Markets aims to ensure that the information/material is accurate, it cannot be held responsible for any omissions/miscalculations or mistakes as it does not warrant the accuracy of such material. Any material and/or content provided herein is intended for educational purposes only and does not constitute investment advice on how clients should trade as it does not take into consideration your personal objectives, financial circumstances or needs. Please seek independent advice before making any trading decisions. Reliance on such material is solely at your own risk and Moneta Markets cannot be held responsible for any losses resulting directly or indirectly from such reliance. Any reference to figures/statistics or numbers refers to the group of companies of Moneta Markets. Please refer to the legeal documents should you require more information.
