EUR is a european union nation currency while USD is a USA currency which serve as a utility function on a daily basis . On Monday the 28th of June,EURUSD started trading at around 1.19440. On Tuesday the same week,the price went as low as 1.18776 but later slightly rises to around 1.19111 the same day. On Wednesday the same week,the price further dropped to around 1.18456 but later slightly rises to around 1.18614 the same day. On Thursday, the price further dropped to around 1.18370 but later rises to around 1.18820 the same day. This upwards and downwards movement is as a result of traders behaviour which can further be explained as from below;
Traders behaviour
Traders affect the way the EURUSD market moves in the market. When the EURUSD market is moving upwards,that will be an indication that the sellers placing their short positions are more than the buyers placing their long positions. This will make the market to profit with those few buyers on their long positions while the sellers with their short positions will make some losses. On the other hand,when the EURUSD is moving downwards,that will be an indication that the number of buyers are more than the sellers. This will make the market to profit with those few sellers placing their short positions and cause many buyers placing long positions to make some losses. Since there is possibility of the EURUSD market to be bullish in the coming week,we can therefore explain it further as from below;
1.EURUSD bullish price analysis based on traders behaviour
In a bullish market,the EURUSD currency pair will be moving in an upwards direction.On Monday the 28th of June,EURUSD started trading at around 1.19440. On Tuesday the same week,the price went as low as 1.18776 but later rises to around 1.19440 the same day. On Wednesday the same week ,the price further dropped to around 1.18456 followed by another drop on Thursday to around 1.18370 but later rises to around 1.18820 the same day while on Friday,it latter dropped to around 1.182200. This market movement is being indicated as from the candle sticks chart below;
chart. Two points are being indicated. There is point A and B. Before A,the market can be seen to have moved as low as 1.18800 from its previous high of 1.19400. At 1.18800, there are many number of sellers placing their sell positions in the hope that the market will continue moving downwards. This causes the market to experience an oversold condition and gained support where it slightly moves upward to point A at around 1.19100. At point A, some sellers who were holding their sells position are starting closing their positions and beginning to open a buy positions in the hope that the market will continue moving upwards. Because of this, the market again experience an overbought condition at point A and resist to continue moving upwards. It reversed and moves downwards all the way to 1.1840. At 1.18400,there are more sellers placing more sell positions and closing their previously bought positions in the hope that the market will continue moving downwards. This causes the market to gain support at 1.18400 where it slightly moves upward to point B at 1.18830. At point B, more buyers are beginning to open more buy positions in the hope that the market will continue moving upwards. This causes the market to experience an overbought condition at point B where it resist to continue moving upwards but instead reversed and moves downwards to 1.184303. The market can now be seen to have started moving upwards. There is possibility of this upward movement to continue until next week if the number of sellers placing their short positions will continue to exceed the buyers. On the other hand,if the number of buyers will exceed the number of sellers,then the market will continue moving downwards . If you place your buy position,make sure to apply risk management and strategy well so that the market does not punish you.
