EURUSD has become volatile and corrective, but still remains below 1.1880 to 1.1860 area. EURUSD is facing support around 1.1760 event area. Will the price strike higher 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.
July 20, 2021, | AtoZ Markets – EURUSD is currently trading around 1.1775 area and trying to decline further downside. After breaking below 1.1880 to 1.1860 support level, the bears pushed the price downside quite aggressively, but failed to sustain the bearish pressure below 1.1780 to 1.1760 psychological event area. As per the current price action context, the price may find strong support at the falling wedge pattern in the coming days.
EURUSD Facing Support As the Event Level Working Strongly
EURUSD is currently residing near 1.1775 area and trying to push downward. However, the dynamic level of 20 EMA is still holding the price as strong resistance on the intraday chart.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD is facing support and currently trading around 1.1775 area. As per the current price action, if the price bounced upside from 1.1760 to 1.1780 support area and breaks over the falling wedge pattern’s resistance with an impulsive bullish candle, the bulls may regain momentum and push the price upside towards 1.1860 to 1.1880 area as a first target. The second target will be 1.1950 to 1.1970 area if the price can break above 1.1860 to 1.1880 area in the coming days.
Moreover, the dynamic level of 20 EMA is currently residing above the price. So, the bulls may regain momentum if the price can break above the dynamic level in the process. Along with this, the MACD lines are currently residing below the 0.00 level and gradually moving upside. It indicates that the bulls may regain momentum in the days ahead.
EURUSD May Continue Lower
According to the daily chart, EURUSD is facing support, but the overall momentum is still bearish. As per the current scenario, if the price can have a daily bullish candle close above 1.1760 to 1.1780 area, the price may recover higher towards 1.1860 to 1.1880 area in the coming days. So, if the price retraced higher towards 1.1860 to 1.1880 resistance area and rejects with a daily bearish candle, the bears may sustain the bearish pressure towards 1.1780 to 1.1760 area as a first target. The second target will be 1.1650 to 1.1600 area if the price can break below 1.1780 to 1.1760 area in the process.
Image: EURUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, 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 days ahead.
To conclude, as long as the price residing below 1.1880 to 1.1860 resistance area, the bias will remain bearish. As the overall bias is still bearish, there is a high chance that the price may decline further lower after an upside retracement in the coming days.