EURUSD broke below the 1.0920 with a daily close and currently staying below the lowest level since 2018. The impulsive Bearish trend may continue towards the 1.0800 support area in the coming days. Let’s check EURUSD Technical Analysis for more levels and insights.
February 18, 2020 | AtoZ Markets – EURUSD is moving downside within an impulsive and non-volatile bearish trend. However, on the intraday chart, Buyers tried a bit to move the price higher above 1.0850 but failed. As a result, the price stayed below 1.0850 and approaching to touch the 1.0800 level soon.
There are several reasons behind the impulsive bearish pressure in the EURUSD price.
As we know, the eurozone economy is weaker than in 2014-15. The main reason behind the weakening economy is due to the Brexit negotiations and trade deals with China. Another indication is the current interest rate of the Eurozone, which is lower since 2014-15. Moreover, there is no sign of economic support from Germany and France. The German growth has stagnated in Q4 while French Industrial Production is falling. On the other hand, the central Bank of Italy also forecasted some risks related to its economy.
However, it is not likely that the current trend will continue for a longer period of time, but investors require some before starting a new era.
This week is full of PMI’s where most of the data are forecasted to remain below the expectation. If the reports come with the expectation, we may see the EURUSD price to fall down more.
EURUSD Buyers Need to Hold the Price Above 1.0850
According to 1 Hour chart, the price is moving sideways as the last 50 candles made barely downside move compared to the previous bearish pressure.
Image: EURUSD 1 Hour Chart
Currently, the price is facing resistance from the dynamic level of 20 EMA along with Tenkan Sen and Kijun Sen. Moreover, the Senkou Span A is above these dynamic levels and just below the 1.0850 levels. Therefore, buyers need to take and establish the price above the 1.0850 levels to indicate a short term corrective bullish momentum.
As long as the price is below 1.0850, the overall outlook is expected to be bearish.
EURUSD May Correct towards 1.0920
According to the daily chart, the price is residing far away from the dynamic level of 20 EMA. Therefore, it is likely that EURUSD will move towards the 1.0920 area due to gravitational force.
On the other hand, the MACD is bearish to indicate the upcoming bearish pressure. However, there is a possibility of bullish cross over in the bearish zone to point a short-term bullish momentum.
As long as the market is bearish, the overall target of EURUSD would be 1.0800. However, to continue the bearish journey, some bullish correction is pending.
To conclude, EURUSD broke below 1.0920 with a daily close. Therefore, a certain corrective structure towards 1.0920 indicates that the price may continue the long term bearish rally.