EURUSD opened in 2022 at 1.13685. The bulls attempted a rally but the upward movement wasn’t a strong one and in the process, a double top was formed. This double top happened between January 2022 and February 2022 and during this period, the price hit the year’s high at 1.14965. After the double top, $EURUSD dipped to 1.08062, about 700pips loss from the year’s high.
This month, EURUSD rebounded and made its way to January’s support at 1.11218. This upward movement has continued and the price has reached a monthly high of 1.11395 as of 17/03/2022. As suspected, this rebound is not evolving into a full-blown bullish rally as $EURUSD has begun to lose its bullish momentum. The price is currently falling even though there are no indications on the RSI that the price has been overbought on the 4-hour timeframe. If the price closes in the lower region of the Bollinger Bands, this might lead to a continued bearish run.
As the price continues its downward trend, technical indications show that the bears might be more active as the price might reach 1.08236 which may serve as the major support level for the first half of the year 2022.
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