EURUSD pushed lower after the U.S. Dollar Index rose above 99.00 area. EURUSD is currently quite non-volatile and impulsive as Bears rejected the descending channel resistance around 1.1100 area. EURUSD Bears active below 1.10 – will continue to push lower? What are the charts and technical indicators saying? Read more to find further insights into today’s EURUSD Technical Analysis.
March 31, 2020 | AtoZ Markets – The U.S. economy is experiencing a deeper slum than formerly anticipated, as the Coronavirus pandemic kept harming businesses. As a result, the unemployment rate is increasing day by day. According to the economist, “The world’s largest economy will shrink an annualized 34% in the second quarter, compared with an earlier estimate of 24%, and unemployment will soar to 15% by mid-year, up from a previous forecast of 9%.”
However, economists are expecting a strong recovery in the third quarter with the expansion of gross domestic product (GDP) at 19%. They also added, “Our estimates imply that a bit more than half of the near-term output decline can be made up by the year-end.”
EURUSD Bears Active Ahead of NFP
EURUSD is currently trading around 1.0960 area and trying to push lower. After the price broke below 1.1050 area, the Bears became quite strong and continued the bearish run.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD is currently residing near 1.0960 area after breaking below the dynamic level. The price broke above the 1.1100 area in the intraday chart but failed to sustain further and reversed back. As per the current price action, if the price continues to decline and EURUSD Bears remains active below 1.10 area, the Bearish pressure may continue further towards 1.0800 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is residing above the current price after EURUSD takes over it. The dynamic level may now act as a strong resistance and push the price lower. Besides, the MACD lines were residing above 0.00 level and had a Bearish intervention.
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Will EURUSD Descending Channel Contain Further?
According to the Daily chart, EURUSD is currently residing around 1.0960 area and quite impulsively pushing the price lower. EURUSD broke above the descending channel resistance once but failed to sustain and declined. After retracing 50% of the recent Bearish trend, EURUSD Bears are currently active from the descending channel resistance around 1.1100 area and gradually pushing lower. As per the current price action context, the Bears are still quite strong and may continue the Bearish pressure further towards $1.0800 area in the coming days.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is residing above the current price after EURUSD broke below it today. The dynamic level may now work as a strong resistance, if the price can have an impulsive daily close below it and act as a Bearish confluence. Besides, the MACD indicator lines are residing below the 0.00 level and may have a Bearish cross over which may also add to the bears confidence.
To conclude, EURUSD current Bearish momentum is quite strong to sustain further. As long as the price remains below the 1.1100 area, EURUSD Bears will be active in the days ahead.