EURUSD faces resistance at 1.118 area and may continue Bearish pressure. After rejected from the 1.08 area, EURUSD has reached 1.118 impulsively. Let’s check EURUSD Technical Analysis for more levels and insights.
March 3, 2020 | AtoZ Markets – EURUSD has been quite non-volatile and impulsive after broke above 1.10 area. After an extended period of Bullish momentum, EURUSD faces resistance at 1.118 area. If Bears are able to push the price lower, EURUSD may continue its Bearish pressure towards the next support area in the upcoming events.
ECB’s Vice Chairman Luis De Guindos said earlier while discussing on Coronavirus impact, “Fiscal policy is the correct answer, we should not get confused, when you have a problem, you can’t always look at Central Banks.” There is a 90% chance that ECB will lower its deposit rate by ten basis point in the upcoming event, and a total of 20 basis point by the end of the year. ECB deposit rate is currently at 0.5%, which is the lowest of all time. Many Economists and Traders think that the bank has no room for easing.
U.S. Federal Reserve Chairman Jerome Powell made a statement earlier saying that, “The Fed would act as appropriate to support the economy.” Moreover, Coronavirus has killed more than six people in the U.S. State of Washington, according to health officials. It is a big concern that Coronavirus may harm the U.S. economy extremely shortly.
EURUSD Faces Resistance at 1.118 Area may Continue Bearish Pressure
EURUSD has been quite an impulsive and non-volatile after broke above 1.10 area. As per current price action, EUSUSD may push lower towards 1.10 area again in the coming events.
Image: EURUSD 1 Hour Chart
According to the 1-hour chart, the price is currently residing near 1.111 area, after EURUSD faces resistance at 1.118. Bearish pressure may continue further lower towards the 1.10 area again. EURUSD broke below the dynamic level of 20 EMA, along with the Kijun line and the Tenkan line.
Moreover, the MACD lines are residing above the 0.00 level and gradually sloping down. It is a good indication that Bearish pressure may sustain further. The MACD histogram volumes are residing below 0.00 line and continuously creating bears convergence.
EURUSD Bullish Momentum may Continue Further after Retracement
According to the Daily chart, EURUSD is now residing near 1.111 area and continuously pushing lower. After a Bullish impulsive momentum, EURUSD faces resistance at 1.118 area. Bullish momentum may continue after a certain retracement.
Image: EURUSD Daily Chart
On the other hand, the dynamic level of 20 EMA is residing below 1.10 support area, along with the Kijun line and the Tenkan line. It may pull the price down towards 1.10 area as Mean reversion. The MACD lines are residing below 0.00 level and may maintain there, as Bears continues to push the price down.
To conclude, EURUSD is now residing near 1.111 and may continue lower with the target of 1.10 area. EURUSD Bullish trend may proceed further with the target of 1.118 area again after a certain retracement.