EURUSD Bullish trend is getting stronger and may reach 1.15 area soon. The pair become quite impulsive after the recent bounce from the support area. Let’s check EURUSD Technical Analysis for more levels and insights.
March 6, 2020,| AtoZ Markets – EURUSD recently found strong support at 1.11 area and broke above 1.12 level quite impulsively. EURUSD is currently trading at 1.1330 and continuously trying to push higher. If Bulls can maintain the EURUSD Bullish trend, the price may reach higher towards the next resistance area soon.
The U.S. Dollar extended losses after today’s markets opened with the fear for further rates cut may take place. The USD is getting weaker as the Coronavirus infected cases are increasing on a daily basis. Traders are waiting for the upcoming nonfarm payroll data, which is going to publish today. If the nonfarm payroll data comes higher than forecast, USD may gain momentum.
Moreover, David Berson, the Chief Economist at Nationwide, said in an interview with Bloomberg, “Non-farm payrolls rose by an unsustainably strong 225,000 in January. While this reflected the solid job market, it also likely was helped by unseasonably warm weather, which tends to have a disproportionately large impact in winter months.”
EURUSD Bullish Trend may Continue to Push Higher
EURUSD has been quite impulsive and non-volatile after it broke above the 1.121 area. As per current price action, EURUSD may retrace lower before it continues the Bullish momentum.
Image: EURUSD 1 Hour Chart
According to the 1-hour chart, EURUSD is currently residing near the 1.1300 area and trying to push lower. After an impulsive Bullish move from the support area, the price reached higher towards the 1.1340 area. Bears may enter the market to retrace lower. If the price remains above 1.1250 area with a daily close, the Bullish pressure may sustain further.
Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. It may pull the price down as Mean Reversion for a retracement. The MACD lines are residing above 0.00 level and maintain there for an extended period. The MACD histogram volumes are also residing above the 0.00 level, which is a good sign for Bullish pressure.
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EURUSD May Extend Upward Momentum Further
According to the Daily chart, EURUSD is now residing near the 1.1310 area and trying to push the price higher. After the price rejected 1.08 key support level, EURUSD became very impulsive and non-volatile with the Bullish pressure. The price broke above the 1.121 area with the nose of a bar, which is not a strong breakout.
Image: EURUSD Daily Chart
On the other hand, the dynamic level of 20 EMA is residing far away down from the current price, along with the Kijun line and the Tenkan line. As per the Mean Reversion rules of the dynamic level, EURUSD may retrace down at least towards the 1.110 area.
To conclude, the price of EURUSD may retrace down towards the 1.110 area. If EURUSD finds support at 1.110 area, the Bullish pressure may sustain further in the coming days. It should be noted that NFP is knocking on the door; it may bring uncertainty to the markets.