EURUSD Bullish Counter pushing higher towards 1.1075 to retest as retracement. After the break below Head and Shoulder support, such retest will empower Bears. Let’s check EURUSD Technical Analysis for more levels and insights.
January 31, 2020 | AtoZMarkets.com – EURUSD managed to regain Bullish momentum after bouncing off the 1.10 support area with a daily close. The price managed to breach above the dynamic levels as well as 1.1020 area indicating Bullish pressure in the making.
Eurozone economy has been under pressure since the end of 2019 as the French and Italian economy unexpectedly shrank. Moreover, Germany having weaker Retail Sales number lead to more weakness for the Euro in the process. On the other hand, Dollar being considered as Safe Haven after the Coronavirus attack in China may lead further against Euro.
Despite having unchanged Policy Rate and declining Pending Home Sales report, USD is the stronger currency in the pair. It may continue to gain momentum and sustain against Euro in the long run.
EURUSD Bullish Counter may push higher
EURUSD recently formed higher low at 1.1020 area after bouncing off the 1.10 area. The price managed to break above the line with strong Bullish momentum which may sustain EURUSD to push higher towards 1.1075.
image: EURUSD 1 Hour Chart
According to 1 hour chart, the price has recently closed an impulsive Bullish candle while having confluence from the dynamic levels. The price breaking above 1.1020 also lead to a break above the Kumo cloud resistance. Currently, the Chikou Span (Green Line) also broke above the price line while the Tenkan and Kijun line is below the price as support.
Moreover, MACD lines are residing above 0.00 line while being at the verge of having a Bullish cross. As there is no sign of Bearish Divergence along the way, no Bearish intervention is expected soon. So, current EURUSD Bullish Counter may lead to retrace higher towards 1.1075 in the coming days.
To conclude, as per current price action, EURUSD Bullish Counter may push higher towards 1.1075 area. As the price rejects off the 1.1075 area, the Bearish trend may continue with target towards 1.0920 area.