EURUSD Bullish gap indicates further upside pressure in the making. After breaking 1.1180 area, EURUSD pushed higher quite impulsively. Let’s check the EURUSD Technical Analysis for more levels and insights.
March 9, 2020, | AtoZ Markets – The price started today with a Bullish gap. After rejecting the key level 1.1080 area, EURUSD became quite impulsive and non-volatile. The EURUSD Bullish gap took the price higher near around 1.1500 area.
The European central bank does not take any effective action to combat a possible economic slowdown from the spread of Coronavirus. The EURUSD became strong after the German Industrial Production report for January released. The result beat the forecast and rose from 2.2% to 3% and signalled signs of the Eurozone’s largest economy German recovery pre coronavirus outbreak.
On the other hand, the USD weakened after the number of Coronavirus infected cases found in the United States. The United States expected to double the COVID-19 cases within the next 48 hours. There is an 84% chance that the Federal Reserve could cut the interest rates as early as 17-18 March.
EURUSD Bullish Gap may Fill as Volatility Increase
EURUSD has become volatile and corrective after it broke above the 1.1400 level today. As per current price action, EURUSD may retrace lower before continuing the Bullish momentum.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, the price is currently residing near 1.1430 area and trying to push higher. EURUSD Bulls has rejected 1.1490 area and started to reject Bulls in the process. Though Bulls may gain the momentum again but a certain retracement is expected. Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun and the Tenkan line. It may pull the price down towards 1.1290 area as Mean reversion. If price finds support at 1.1290, the Bullish pressure may sustain further.
EURUSD may Nosedive to 1.1180 as a Retracement
According to the Daily chart, EURUSD is currently trading at 1.1450 area after a certain EURUSD Bullish gap. After an impulsive and non-volatile Bullish move, EURUSD may rejecting 1.1500 area. If the price can have a daily close below 1.1500 area, the price may nosedive towards 1.118 area for a retracement.
Image: EURUSD Daily Chart
Moreover, the dynamic level of 20 EMA is residing below 1.1180 event area, along with the Kijun line and the Tenkan line. It may pull the price down for retracement as Mean Reversion. On the other hand, the MACD line and the histogram volumes are above 0.00 level and may maintain there for a while.
To conclude, EURUSD may see some declining price action as Bullish Momentum fades. Therefore, a daily close below 1.1500 area can lead to certain counter and push lower towards 1.1180 area as Retracement.