During the current Coronavirus crisis, EURUSD has seen significantly volatile recently. The world’s most traded currency pair has hit both its recent highest and lowest levels in this month. EURUSD found resistance at 1.1050 area, while raising certain questions. What are the charts and technical indicators saying? Read more to find further insights into today’s EURUSD Technical Analysis.
March 27, 2020 | AtoZ Markets – EURUSD is currently residing near 1.0990 area after the price found resistance at 1.1050. Current Bearish pressure is quite impulsive and non-volatile, but Bulls are still in the market. What can be the outcome today? Will the Resistance at 1.1050 hold the Bulls in the coming days?
EURUSD Found Resistance but Will it Hold?
EURUSD is currently trading at 1.0990 area while trying to push lower. After rejecting 1.1050 resistance area, recently EURUSD declined and had an H4 Bearish engulfing close.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, after EURUSD bounced from 1.0650 key support, the Bulls pushed the price higher quite impulsively. After rejecting the resistance at 1.1050, EURUSD pushed lower with a Bearish engulfing candle.
As per current price action, there is a higher chance that the Bears may continue to push lower as the resistance holds. So, if the price sustains below 1.1050 area, the Bears may continue the momentum and push lower towards 1.0890.
Furthermore, the dynamic level of 20 EMA is residing below the current price, which may pull the price down as a Mean reversion. Though the overall bias is indecisive, a bounce from the dynamic level may lead the price higher. Moreover, the MACD lines are residing above 0.00 level and currently at the verge of making a Bearish cross over. The Stochastic Oscillator lines have already crossed below overbought level 80 indicating further Bearish pressure in the days ahead.
Is EURUSD Retracement Complete?
According to the Daily chart, EURUSD is currently residing near 1.0990 area and successfully retraced 50% of the recent Bearish trend. After bouncing from the descending channel support around 1.0650 area, the price recovered higher quite impulsively. Currently, EURUSD found resistance at 1.1050 area and started to decline. As per the current scenario, if the price can have a daily close below 1.1050 area, the Bears may take over the market and push the price lower towards 1.0650 again.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is residing below the current price. So, if EURUSD breaks below the dynamic level impulsively with a daily close, the Bears may continue to push the price lower. Moreover, the Stochastic Oscillator lines are residing near the overbought level 80 and may continue to climb further until Bearish intersection occurs in the coming days to add to the Bearish confluence.
To conclude, EURUSD has been quite impulsive and non-volatile and successfully retraced 50% of the recent Bearish trend. A daily close below 1.1050 may lead the price for further downward move.