EURUSD has become volatile and currently residing inside the ranges of 1.17 to 1.19 area. EURUSD broke above 1.18 psychological area. Will bulls sustain the bullish trend further 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.
August 13, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1820 area and trying to climb higher. The price broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, EURUSD may face strong resistance around 1.19 area in the coming days.
Moreover, San Francisco Federal Reserve Bank President, Mary Daly said on yesterday, “The ongoing expiration of the U.S. government’s upgraded unemployment advantages of $600 per week could affect families and the more extensive economy by expelling salary that was utilized to pay for rent, food supplies, and debts.”
In addition, Daly also added, “It makes the potential for a dent, a little bit of a gap in consumer demand and consumer spending. We have evidence that suggests they were spending those resources to pay rent or to buy food or to buy other consumer goods.” On the other hand, the U.S. jobless claims report is going to publish today. If the actual comes greater than the forecast, it will be good for USD. However, a negative result may help EUR to sustain the bullish trend.
EURUSD Broke Above as the U.S. Economy Is Sinking
EURUSD is currently residing near the 1.1820 area and trying to recover higher. After bouncing from the 1.1710 area, the price impulsively pushed higher and broke above the intraday event level 1.18.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD broke above and currently residing near the 1.1820 area. As per the current price action, if the price can have a bullish close above 1.18 support area, the bulls may push the price upside towards 1.19 in the coming days. Alternatively, if the price breaks below 1.18 support level, the bears may regain momentum and decline towards 1.17 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. The dynamic level may act as a strong support to push the price upward. Besides, the price is currently trying to break above the Bollinger Bands upper band. So, if the price can break above the upper band with a 4-hour candle close, the bulls may sustain the bullish momentum further.
In contrast, if the price rejects Bollinger Bands’ upper band and had a 4-hour bearish candle close below it, the bears may regain momentum in the process. Also, the MACD lines are currently residing below 0.00 level and trying to move upward. It indicates that bulls may sustain the bullish pressure further in the days ahead.
EURUSD Bulls Are Still Optimistic
According to the daily chart, EURUSD broke above and currently trading around the 1.1820 area. As per the current price action, if the price reaches 1.19 area and breaks above, the bulls may recover higher towards 1.20 key area in the coming days. In contrast, if the price reaches 1.19 area and rejects, the bears may regain momentum and decline towards the 1.17 support area again in the days ahead.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. The dynamic level may carry the price as a support and help bulls to break above in the process. Along with, the Stochastic Oscillator lines are currently residing above the oversold level 20 and had a bullish cross over. It indicates that bulls may recover further in the coming days.
To conclude, after gaining more than 600 pips, EURUSD is currently facing strong resistance around 2018’s high. A daily close is required to identify the definite momentum in the coming days.