EURUSD has been quite volatile and impulsive with the recent bearish momentum. EURUSD broke below 1.0880 as the US stock market regained momentum. What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
April 17, 2020 | AtoZ Markets – EURUSD is currently trading around 1.0820 area and trying to push lower. After facing resistance at 1.0880 area, EURUSD nose-dived and push the price below 1.0830. As per the current price action, USD has a greater probability to regain momentum ahead of Euro.
EURUSD Broke Below Strong Support as the US May Reopen soon
Federal Reserve Bank President Neel Kashkari said yesterday, “President Donald Trump’s plan for reopening the U.S. economy following the novel coronavirus pandemic “makes sense”, and is consistent with the advice of health experts.” He also added, “When I looked at the president’s plan, it seems consistent with the advice, and the feedback that we’ve heard from health experts. There is a way to reopen the economy slowly. We will try to avoid the virus flaring back up again, and giving back the gains that we’ve had. I think a staged approach, looking over the horizon, makes sense.”
On the other hand, European Union finance ministers published a statement on Thursday, which says, “Banks must continue financing households and corporates, including small size business enterprises, who are experiencing difficulties amid the COVID-19 pandemic..”
EURUSD Still Indecisive – Can Bears Sustain the Bearish Pressure?
According to the Daily chart, the pair is currently residing near 1.0820 after EURUSD broke below 1.0880. As per the current price action context, the price became volatile and indecisive but still residing below the dynamic level. So, if the price can have a daily close below 1.0790 area, the bears may push the price lower towards 1.0640 in the process. Alternatively, if the price pushes higher, and closes above 1.0880 area, the bulls may regain momentum and push the price higher towards 1.1150 area.
Image: EURUSD Daily Chart
Furthermore, the MACD lines are residing below the 0.00 level and had a bearish cross over, which may indicate further bearish continuation. Besides, the MACD histogram created a bullish divergence, which may indicate that bulls are preparing to counter. Moreover, the dynamic level of 20 EMA is residing above the price, which may act as a strong resistance. In contrast, if the price can break above the dynamic level, the bulls may push the price higher in the process.
To conclude, EURUSD is currently facing a tremendous amount of volatility after U.S. President Donald Trump’s speech yesterday. EURUSD may push further down, but a daily impulsive close is required to find the definite momentum for the coming days.