EURUSD has become impulsive and non-volatile and reached at 2018’s high. EURUSD found resistance around 1.1620 area, after an aggressive bullish momentum. 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.
July 24, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1590 area and trying to push downward. However, EURUSD still maintains the bullish momentum above the dynamic level of 20 EMA on the intraday chart. As per the current price action, the dynamic level may pull the price back to the mean in the coming days.
EURUSD fall today during the London session may be trying to retrace down, after a non-volatile move. Moreover, the U.S. monetary appearance has obscured in the previous month amid restored lockdowns in certain states from surging coronavirus cases. However, as per market analysts in a Reuters poll who cautioned of a high hazard, the employment recuperation in progress switches by year-end. Furthermore, U.S. coronavirus cases moved toward 4 million on Thursday, with more than 2,600 new cases each hour on average. The most elevated rate on the world and some state governments have reimposed limitations planned for controlling the spread of the infection.
EURUSD Found Resistance as Lockdowns Restored
EURUSD is currently residing near 1.1590 area and trying to decline. After bouncing from 1.1550 area, EURUSD had a bullish engulfing bar close but failed to break above 1.1620.
EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD found resistance and currently residing near 1.1590 area. As per the current price action, if the price decline towards the dynamic level of 20 EMA, which is around 1.1550 area and bounces higher, the bulls may recover higher towards 1.1700 area. Alternatively, if the price breaks below 1.1550 area and the dynamic level, the bears may regain momentum and push the price down towards 1.1450 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as a strong support to push the price upside. The Kijun line and the Tenkan line may work as a confluence of the dynamic level of 20 EMA in the process.
EURUSD May Revert Back to the Mean
According to the daily chart, EURUSD found resistance around 1.1620 area and trying to retrace down. As per the current price action, if the price can have a bearish candle close below 1.1620 area, the bears may decline towards 1.1450 area for a retracement. So, if the price retraces down towards 1.1450 area and bounces higher, the bulls may sustain the bullish bias towards 1.1620 area as a first target. The second target will be 1.1800 area if the price breaks above 1.1620 in the coming days.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing far below from the price. It may pull the price down as Mean Reversion. Besides, the MACD lines are currently residing above 0.00 level and may have a bearish intersection. It indicates bears are trying to regain momentum. Also, the histogram created a bearish divergence, which also an indication of upcoming bearish pressure.
To conclude, EURUSD has gained a good amount of pips in the running month after ECB announced stimulus packages. A daily close is required to identify the definite momentum in the days ahead.