EURUSD Dropped Below 1.2070 Support Level – Will Continue Further Lower?


EURUSD bears have regained momentum after rejecting 1.2150 to 1.2130 resistance level. EURUSD dropped below 1.2070 psychological support area. Will the bears continue to push the price further lower in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s EUR/USD Technical Analysis. 

May 3, 2021, | AtoZ Markets – EURUSD is currently trading around 1.2055 area and trying to push upside. After bouncing from 1.2050 to 1.2070 support level, the bulls pushed the price upward quite impulsively, but failed to sustain the bullish trend over 1.2130 to 1.2150 key resistance level. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the coming days.

EURUSD Dropped Below As the U.S. Dollar Index Climbed Upward

EURUSD is currently residing near 1.2055 area and trying to recover higher. However, the price is still residing over the Kumo Cloud on the daily chart.

EURUSD Dropped Below

Image: EURUSD 4 Hour Chart

According to the 4-hour chart, EURUSD dropped below and currently trading around 1.2055 area. As per the current scenario, the price may retrace higher towards 1.2050 to 1.2070 area in the coming days. So, if the price retraces higher towards 1.2050 to 1.2070 area and rejects with an impulsive bearish candle, the bears may sustain the bearish pressure towards 1.2020 to 1.2000 area as a first target. The second target will be 1.1950 to 1.1940 area if the price can break below 1.2020 to 1.2000 area in the process. Alternatively, if the price can break over 1.2050 to 1.2070 area with an impulsive bullish candle close, the bulls may regain momentum and push the price upward towards 1.2130 to 1.2150 area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may act as strong resistance to push the price downside. However, the bulls may regain momentum if the price can break over the dynamic level in the process. Also, the Stochastic Oscillators lines are currently residing above the oversold level 20 after having a bullish crossover. It indicates that the price may recover further higher in the coming days.

EURUSD Bulls Are Still Active On the Market

According to the daily chart, EURUSD dropped below and currently trading around 1.2055 area. As per the current price action, if the price can have an impulsive daily bearish candle close below 1.2020 to 1.2000 area, the bears may push the price lower towards 1.1900 to 1.880 area as a first target. The second target will be 1.1750 to 1.1700 area if the price can break below 1.1900 to 1.1880 area in the process. On the contrary, if the price bounced upside from 1.2020 to 1.2000 area and had an impulsive bullish candle close above 1.2130 to 1.2150 area, the bulls may regain momentum and recover higher towards 1.2300 to 1.2350 key area in the coming days.

EURUSD Dropped Below

Image: EURUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may hold the price as strong support. Besides, the Kijun line may work as a confluence of the dynamic level in the process. However, the bears may sustain the bearish pressure further if the price can break below the dynamic level in the coming days.

To conclude, as the overall momentum is still bullish, there is a high chance that EURUSD may continue the bullish trend further. A daily close will help to identify the definite momentum in the days ahead. 

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