EURUSD Bears are facing barriers at 1.10, where the primary target of the bearish pressure is at 1.0920. However, the price may correct towards the upside before reaching the primary destination. Let’s check EURUSD Technical Analysis for more levels and insights.
February 6, 2020 | AtoZMarkets.com – EURUSD has been Bearish since the price broke below the 1.1075 area. The price is currently heading towards 1.0920 support area with an Impulsive pressure. However, the price became volatile as soon as it reached the psychological 1.10 area. Therefore, certain corrections may move the price further low towards 1.0920.
Eurozone getting looser against USD as the fear of Coronavirus starts to rise. Besides this, the overall economic activity is not strong to say that the Eurozone economy has started to rebound. In today’s speech, ECB President Christine Lagarde mentioned that they have decided to launch a review of the monetary policy strategy. She also mentioned that the declining trend of the Eurozone economy was due to the slow productivity growth and the legacy of the financial crisis.
However, on the other hand, the U.S. economy has gained momentum with low unemployment, a bullish stock market, and better household stability. Despite the positive developments the main focus for the USD is might remain towards the Non-Farm Payroll release, tomorrow.
EURUSD is Volatile at 1.10 Support
The recent bearish pressure on EURUSD has enough momentum to break the 1.10 support area. However, as the price reaches that level to volatility increases.
On the 4-Hourly chart, the price is very indecisive in this area from the last few trading sessions. Moreover, the volatility in the price after opening the London session indicates that the price may move higher towards the dynamic level of 20 EMA and Tenkan Sen. To remain bearish the 1.1040 is a horizontal resistance that may create a selling pressure along with the Kumo Cloud.
The Bearish Target of EURUSD is 1.0920
According to the Daily chart, the price moved towards the 1.10 with an impulsive Bearish pressure. Therefore, the price saw a gap between the dynamic levels 20 EMA, Tenkan and Kijun line, which indicates that the price may move higher for a short term correction. Besides the dynamic levels, the MACD histogram is squeezing higher but remains on a bearish territory.
Moreover, the MACD lines are expanding and preparing for a bullish crossover which may lead the price higher towards the 1.100 resistance areas. As the overall sentiment and price action is strongly Bearish, the price may continue to move lower towards 1.0920 before completing the certain correction at 1.1040.
To conclude, EURUSD Bearish Trend is expected to continue with the target of 1.0920. Overall, the outlook may remain bearish as long as the price remains below 1.1075 area.