EURUSD Bearish Trend Continues towards 1.0920 Support after pushing below 1.1075. The price may consolidate before continuing the Bearish pressure. Let’s check EURUSD Technical Analysis for more levels and insights.
February 5, 2020 | AtoZMarkets.com – EURUSD has been Bearish since the price broke below 1.1075 area. It is currently heading towards 1.0920 support area with Bearish Impulsive pressure. Though the price is turning non-volatile with the Bearish momentum, a certain correction may see along the way.
Euro zone is currently losing momentum against USD as Global crisis due to Coronavirus is on the rise. Though there are certain economic drawbacks from the ECB recently, USD managed to gain impulsive momentum in the process.
Today, U.S. President Donald Trump talked about how he is making the United States of America Great Again. He stated that U.S. economy has gained momentum with low unemployment, better stock market and better household stability. The speech has been Hawkish which helped the USD Bulls to gain momentum over Euro which may sustain further in the coming days.
EURUSD to Correct higher before Continuing lower
EURUSD is currently pushing higher despite the recent impulsive Bearish pressure since it broke below 1.1075 again. The price is still residing above 1.1020 area and may correct higher before the Bearish run continues in the coming days.
image: EURUSD 4 Hour Chart
According to 4 hour chart, the price is currently rejecting Bearish pressure. Despite the consistent Bearish momentum since the price broke below 1.1075 area, certain upward move can be seen. The price is turning indecisive currently, while the dynamic levels like 20 EMA, Tenkan and Kijun line is residing above it.
As EURUSD broke below 1.1075, it was contained inside the Kumo Cloud. The Tenkan and Kijun line has crossed each other to support upcoming Bearish pressure. On the other hand, the Chikou Span (Green Line) found support on the price line which is indicating the price may head higher for a certain period.
Though the overall bias is Bearish, certain Bullish pressure can be seen along the way before the price continues it’s Bearish trend with target towards 1.0920.
EURUSD Bearish Trend may reach 1.0920 in the long run
image: EURUSD Daily Chart
According to Daily chart, the price is heading lower with certain impulsive Bearish pressure. The dynamic levels 20 EMA, Tenkan and Kijun line is sloping downwards but MACD histogram is squeezing higher. Moreover, the MACD lines are creating a Bullish Crossover which might lead the price higher towards at least 1.1050 area. As the overall bias and price action is strongly Bearish, the price may head lower towards 1.0920 but with certain corrections along the way.
To conclude, EURUSD Bearish Trend Continues lower with target towards 1.0920 support area. But certain Bullish pressure may occur along the way as the price continues with the Bearish trend. As the price remains below 1.1075 area with a daily close, the Bearish Bias may continue further.