EUR is a European union-based currency used to carry daily transactions within the European nations while USD is a USA-based currency used to carry daily transactions in the USA territories. Both currencies are being used by online users to purchased products online also. On Monday the 22nd of February,one EUR started trading at around $1.20950. By Tuesday the same week,the price had managed to rise to $1.28000. On Wednesday the same week,the price dropped to around $1.21350 by later rises to around 1.21750 the same day. In the evening the same day,the price dropped to around 1.21250. This price movement is as a result of traders behaviour which can be explained as from below;
Traders behaviour
Traders can affect the movement of the market in both upwards and downwards movement. When the market is moving upwards, that will be an indication of an oversold market condition thus the market will be moving upwards with few buyers so that it can profit with them while when the market is moving downwards, that will be an indication of an overbought market condition thus the market will be moving downwards with few sellers so that it can profit with them. This can further be explained as from below
1. EUR/USD weekly bearish price analysis
In a bearish market, the EUR/USD market will be moving in a downwards direction.On Monday the 22nd of February, EUR/USD currency pair started trading at around 1.20950. By Tuesday the same week,the price had managed to rise to 1.28000 but later came to drop to around 1.21350 on Wednesday the same week. The price again slightly rises to 1.21750 the same day. Currently,it has further dropped to around 1.21250. This is indicated as from the candle sticks chart below;
The above is the EUR/USD currency pair. Two points are being indicated. There is point A and point B. Before A, the market can be seen to have risen all the way to around 1.28000 after it started trading at around 1.20950. This is an impressive profit of around 95 pips for those traders who were on the upward market by that time. At 1.28000,there are so many traders who are still getting into the buy market in the hope that it will continue to move upwards. This causes the buyers volume to exceed the sellers volume thus causing the market to reverse and slightly moves downwards to point A at around 1.21350. At point A, there are more sellers placing their sell position in the hope that the market will continue moving downwards. This causes the market to again gains an upward pressure and slightly moves upward to 1.21750. At 1.21750, there are many buyers placing their buy positions in the hope that the market will continue moving upwards. This again causes the market to reverse again and moves to point B at around 1.21250. If more buyers will continue placing their buy positions,there is possibility of the market to continue moving downwards all the way to around 1.20500. If you are holding your sell position,can continue doing so in order to collect more profit by Friday. Make sure that you have applied risk management and strategy well on your running position.
