EURUSD Drops Below 1.1700 Psychological Level – Will Decline Further?


EURUSD has become impulsive and non-volatile after rejecting 1.1870 resistance level. EURUSD broke below 1.1700 psychological level. Will decline further downward?  What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.

September 23, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1650 area and trying to push downside. The price also broke below the dynamic level of 20 EMA impulsively on the daily chart. As per the current price action, EURUSD may retrace towards the dynamic level in the coming days.

The U.S. dollar touched a two-month high against its exhibited-market peers, as the power ebbed away from cyclical currencies in opposition to the background of debilitating worldwide financial momentum and indications of supported pressure between the U.S. and China. However, the dollar is likewise taking advantage of euro weakness. IHSMarkit’s ‘flash’ purchasing managers index for the eurozone tumbled to 50.1 in September, scarcely over the line that represents development, as a rise in Covid-19 cases hit client confronting services especially hard. Manufacturing fared better, especially in Germany.

EURUSD Broke Below as Dollar Index Hit Two Mont High

EURUSD is currently trading around 1.1650 area and trying to decline. However, after breaking below 1.1700 support zone, the price had a bullish engulfing candle close above it on the intraday chart.

EURUSD Broke Below

Image: EURUSD 4 Hour Chart

According to the 4-hour chart, EURUSD broke below and currently residing near 1.1650 area. As per the current price action, if the price can have a 4-hour bearish candle close below 1.1700 area, the bears may sustain the bearish pressure towards 1.1650 area in the coming days. Alternatively, if the price pushed higher and had a 4-hour impulsive bullish close above 1.1700 area, the bulls may take retracement towards 1.1750 area in the process.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may pull the price upside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.

EURUSD May Decline Towards March’s High

According to the daily chart, EURUSD broke below and currently trading around 1.1650 area. As per the current price action, if the price can break below 1.1650 area with an impulsive bearish close, the bears may sustain the bearish pressure towards 1.1500 area in the coming days.

EURUSD Broke Below

Image: EURUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may act as strong resistance in the days ahead. Also, the MACD lines are currently residing above 0.00 level and gradually sloping downside. It indicates the bears may continue the bearish pressure further in the process.

To conclude, after an extended period of volatility, EURUSD has successfully broken below 1.1750 area. A daily close is required to identify the definite momentum in the coming days.

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