EURUSD has become impulsive and broke below 1.19 area after a fake bullish breakout. EURUSD bears have regained momentum. Will the pair decline further? Gain insights into today’s EUR/USD Technical Analysis.
August 20, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1830 area and trying to decline further. After rejecting the 1.1950 key resistance area, the bears aggressively pushed the price down and gained more than a hundred pips. As per the current price action, bears may face strong support at the dynamic level of 20 EMA in the coming days.
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EURUSD Bears Regained Momentum as the U.S. – China Hold Trade Discussion
EURUSD is currently residing near 1.1830 area and trying to push downside. However, the price broke below the dynamic level of 20 EMA on the intraday chart.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD bears regained momentum and currently trading around 1.1830 area. As per the current price action, if the price declines towards 1.18 support area and bounces higher, the bulls may recover higher towards 1.19 in the coming days. Alternatively, if the price breaks below 1.18 support, the bears may sustain the bearish pressure towards 1.17 area in the process.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong resistance and push the price downward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
EURUSD May Retrace Towards Fibo Level 50
According to the daily chart, EURUSD bears regained momentum and had a strong bearish daily engulfing candle close. As per the current price action, if the price breaks below the Fibo level 76.4, the bears may continue the bearish pressure towards Fibo level 50, which is around 1.16 area.
Image: EURUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. It may act as strong support in the days ahead. Moreover, the RSI line is currently residing below the overbought level 70 and gradually sloping down. It indicates that bears may sustain the bearish pressure further in the coming days.
To conclude, after an extended period of bullish momentum, EURUSD may retrace at least towards the Fibo level 50. A daily close is required to identify the definite momentum in the coming days.