EURUSD pushed the price lower quite impulsively after rejecting 1.0920 event level. Will EURUSD drop lower towards 1.0650 support area? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
April 8, 2020 | AtoZ Markets – EURUSD is currently trading around 1.0850 area and trying to push the price lower. According to the daily chart, the overall price action is currently quite volatile and corrective.
The U.S. Dollar fell today during the Asian session as the investors are diverting to safe havens for increasing numbers of fatalities in the U.S. for the Coronavirus epidemic. Moreover, the New York state announced their highest daily death toll overnight, despite the falling number of cases last week. New York Governor Andrew Cuomo publish a report, which shows that 5,489 deaths in the state overnight. So, if this epidemic continues to harm the United States of America, the county is going to experience a worse economic recession in the coming days.
On the other hand, Eurozone finance ministers hope to agree on half a trillion euros to ease the European economy, and support to financial recovery from the COVID-19. However, Italy and Spain reported the most Coronavirus cases in comparison to other EU countries, which may continue to impact the upcoming price action in the pair.
EURUSD Drop Lower as the COVID-19 Hit the European Economy
EURUSD is currently residing near 1.0850 area while trying to decline further. The overall bias is still bearish as long as the price remains below 1.0920 area in the process.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, the pair is currently residing near 1.0850 area after EURUSD drop lower. Moreover, after the price broke above 1.0830 area yesterday, the price found resistance at 1.0920 area, and came again to retest 1.0830. As per the current scenario, if the price can have a 4-hour bullish close above 1.0830 area, the bulls may continue higher. Alternatively, if EURUSD breaks below 1.0830 area with an intraday bearish close, the bears may sustain further towards 1.0780.
Furthermore, the MACD lines are residing below 0.00 level and may have a bearish cross over. Besides, the RSI line is residing below the overbought level after breaking below the rising trend line. Moreover, the dynamic level of 20 EMA is residing near the current price. So, if the price can break below the dynamic level, bears may sustain the pressure and push lower towards the 1.0650 area. In contrast, if the price bounce from the dynamic level, the bulls may retake charge and push higher.
EURUSD Remains Indecisive Below 1.0920
According to the daily chart, EURUSD drop lower after the price rejected 1.0920 resistance area. As per the current price action context, if the price can break below 1.0780 area with a daily close, the price may push lower towards 1.0650 area. Alternatively, if the price breaks above 1.0920 with a daily close, the bulls push the price higher towards 1.1140 area in the days ahead.
Image: EURUSD Daily Chart
Moreover, the dynamic level is currently residing above the price, which may act as a strong resistance to push the price lower. In contrast, if the price breaks above the dynamic level, the bulls may recover higher towards our expected target area. Besides, the MACD lines are residing below the 0.00 level from an extended period, which may add to Bearish confluence.
To conclude, EURUSD has been quite volatile and indecisive as the Coronavirus is continuously damaging the both EU and the U.S. economy. So, a strong break out from the range between 1.0780 to 1.0920 may help to establish a definite trend in the coming days.