EURUSD has become volatile and corrective while currently residing near the 2018’s high. EURUSD facing resistance around 1.19 event level. Will bears regain momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
August 7, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1840 area and trying to push down. After facing resistance around 1.19 event level, the price impulsively declined towards 1.1820. As per the current price action, EURUSD may revert back to the mean in the coming days.
Dallas Fed President, Robert Kaplan said yesterday, “The Federal Reserve’s crisis loaning facilities have been generally efficient at settling financial markets without requiring huge investment, yet small and medium-sized organizations need more help.” He also added, “One region where monetary conditions are not isolated, and we are seeing pressure is in small, mid-sized organizations, especially those in person-to-person contact businesses.”
On the other hand, Deutsche Bank said on Thursday it had updated up its GDP forecasts for 2020, taking note of that recuperation from the coronavirus-initiated dive in monetary action was advancing quicker than it had before anticipated. The bank also said, “In the Euro-area, the Q2 outcome tells us that activity did not plunge quite as far as feared in lockdown. It also tells us that the post-lockdown rebound was stronger than expected.”
EURUSD Facing Resistance After an Extended Period of Bullish Run
EURUSD is currently residing near 1.1840 area and trying to decline further. However, the price is currently facing support at the dynamic level of 20 EMA, along with the Bollinger Bands middle band.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD facing resistance around 1.19 area and currently residing near 1.1840. As per the current price action, if the price can break below 1.1820 area with an impulsive bearish candle, the bears may push the price downward towards 1.1750 area in the coming days. Alternatively, if the price bounces from 1.1820 area with an impulsive bullish candle, the bulls may recover higher towards 1.19 area again in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. The dynamic level may act as a strong support to push the price upside. Also, the Bollinger Bands middle band may work as a confluence of the dynamic level. Along with, the MACD lines are currently residing above 0.00 level and gradually sloping down. It indicates that bears may sustain the bearish pressure further in the days ahead.
EURUSD Bears May Regain Momentum
According to the daily chart, EURUSD facing resistance may decline further. As per the current scenario, if the price can have an impulsive bearish daily candle close below 1.19 area, the bears may regain momentum and decline towards 1.1750 as a first target. The second target will be 1.16 area if the price breaks below 1.1750 in the coming days.
Image: EURUSD Daily Chart
In contrary, if the price pushes down and reaches 1.1750 area and bounced higher with a daily bullish candle close, the bulls may continue the bullish trend towards 1.19 area as a first target. The second target will be 1.2050 area if the price breaks above 1.19 in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may act as strong support to push the price upside. Besides, the RSI line is currently residing above the overbought level 70, which indicates that the bulls may lose bullish bias in the days ahead.
To conclude, the EURUSD bullish trend has gained more than 600 pips after bouncing from the dynamic level of 20 EMA. A daily close is required to identify the definite momentum in the coming days. Though the bears have stronger hands over bulls as per current price action.