The EURUSD bearish trend may continue, since the price rejected 1.1175 area. Let’s check EURUSD Technical Analysis for more levels and insights.
January 20, 2020 | AtoZ Markets – EURUSD has been quite non-volatile and impulsive with the recent Bearish momentum. It managed to remain consistent with the downward pressure which may lead the price towards 1.10 again.
USD gained against almost all major currencies. Similarly, the gains may sustain further momentum in the coming days. The economic reports like Housing Starts and Retail Sales is currently considered as the main driver for the gains. On the contrary, the positive data may affect the interest rate on the FED meeting this month which might affect USD in the long run.
On the other hand, ECB may not change their policy this week which might lead to neutral behavior from the EURO buyers. EURO is currently gaining over GBP as Bank of England may have a Rate Cut in the coming days. Ahead of Main Refinancing Rate report, EURO may act a bit volatile against USD and the EURO may Rebound.
EURUSD Bearish Trend Continues or Strong Reversal?
EURUSD has been strongly bearish and managed to pushing lower below 1.1100 today with a retest with target towards 1.10. As EURUSD Bearish Trend continued below 1.1200 area, further downward pressure is on the way. The price turned a bit corrective and volatile upon reaching the 1.1100 area. Despite the impulsive bearish trend in place, the price is currently quite slow moving lower.
image: EURUSD 1 Hour Chart
Today the price pushed higher towards 1.1100 and found Bearish Confluence from the dynamic level of 20 EMA. The dynamic level Tenkan and Kijun is currently sloping lower but has not managed to produce confluence along the way. The Chikou Span is nearing the price line where it will find resistance and bounce off it or break it. In any case, if the Green Line manages to break above the price line, certain counter momentum can be observed in the coming days.
Until now, there has been no MACD Divergence supporting a Bullish Divergence or signalling a Bullish Counter. As a result, there are not much chances of strong Bearish Reversal but certain correction may occur.
EURUSD Bears may face Barriers
image: EURUSD Daily Chart
EURUSD has been quite impressive with the recent Bearish Trend. As a result, the price managed to break below 1.1100 already with a retest. Despite the recent impulsive downward pressure, Bears may face certain barriers along the way to 1.10 area. Today, the price already rejected Bulls and pushed lower while dynamic area of Kumo Cloud is residing at 1.1050 area. So, EURUSD pushing lower towards 1.10 is not going to be very smooth and certain volatility and correction may be observed along the way.
To Conclude, EURUSD residing below 1.1100 pushing lower towards $1.10 in the coming days but certain volatility may be observed along the way.