EURUSD volatility increased, but still sustains below 1.2210 to 1.2200 resistance level. EURUSD bears are holding the momentum below 1.2200 area. Will the bears push the price down in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s EUR/USD Technical Analysis.
May 31, 2021, | AtoZ Markets – EURUSD is currently trading around 1.2190 area and trying to push downside. After breaking above 1.2200 to 1.2210 resistance area, the bulls pushed the price higher quite impulsively, but failed to sustain the bullish pressure over 1.2250 to 1.2260 key level. As per the current price action context, the price may face strong resistance around 1.2210 to 1.2200 area in the coming days.
EURUSD Bears Holding as the Key Resistance Level Worked Strongly
EURUSD is currently residing near 1.2190 area and trying to push lower. However, the price is still residing above the dynamic level on the daily chart.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD bears are holding the momentum and currently trading around 1.2190 area. As per the current price action, if the price can have an impulsive 4-hour bearish candle close below 1.2210 to 1.2200 area, the bears may push the price down towards 1.2150 to 1.2130 area in the coming days. On the contrary, if the price can break above 1.2200 to 1.2210 area with an impulsive bullish candle, the bulls may regain momentum and push the price higher towards 1.2250 to 1.2260 key area in the process.
In addition, the dynamic level of 20 EMA is currently residing near the price. So, it may work as strong resistance if the price can have a 4-hour bearish candle close below it. On the other hand, it may work as strong support if the price can have an impulsive bullish candle close above it. Moreover, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
EURUSD Bulls Are Still Optimistic
According to the daily chart, EURUSD bears holding, but the overall bias is still bullish. As per the current price action context, the price may decline towards 1.2150 to 1.2130 area in the process. So, if the price declines towards 1.2150 to 1.2130 area and bounced upside with an impulsive daily bullish candle, the bulls may regain momentum and push the price upward towards 1.2250 to 1.2260 area as a first target. The second target will be 1.2340 to 1.2350 key area if the price can break above 1.2250 to 1.2260 area in the coming days.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may carry the price as strong support. Besides, the Kijun line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing over the dynamic level of 20 EMA on the daily chart, the bias will remain bullish. As the overall trend is still bullish, there is a high chance that the bulls may continue further upward in the coming days.