EURUSD impulsive Bullish run hits the 1.1050 resistance area and may pause now. After rejecting the 1.08 support area, EURUSD reached 1.1050 quite impulsively. Let’s check EURUSD Technical Analysis for more levels and insights.
February 28, 2020, | AtoZMarkets – EURUSD has been non-volatile and impulsive after rejecting 1.08 key support area. Despite the recent strong Bearish trend in place, the Bulls were able to push higher. Despite the recent sudden up move, EURUSD may push lower to the support 1.08 area soon.
EURUSD is residing near three-week highs as Coronavirus infections reach the United States doorstep. Economic forecasters are saying that the impact of Coronavirus will hurt growth in the United States this year and also other infected countries.
Moreover, the European Central Bank member Vitas Vasiliauskas said, “The Governing Council may call an extraordinary meeting to decide on a response to the Coronavirus outbreak.” On the other hand, if FED cut the interest rates in the upcoming event, EUR may gain momentum against USD. Coronavirus infection is hitting the Global economy badly, which may increase further if its antidote is not invented quickly.
EURUSD Impulsive Bullish Run May Takeover by Bears
EURUSD has already hit the 1.1050 resistance area quite impulsively after bouncing from support at $1.08. As per current price action, Bears are trying to push the price down while rejecting 1.1050 resistance. The bearish trend may sustain further if the price remains below 1.1050 area with such Bearish pressure.
image: EURUSD 4 Hour Chart
According to the 4-hour chart, the price is currently residing near the 1.098 area after rejecting 1.1050 resistance. EURUSD impulsive Bullish run may pause as Bears are trying to enter the market. After an impulsive move, there is always a retracement, so as per the current situation EURUSD may retrace down towards 1.092. The dynamic level of 20 EMA is residing near the support level 1.092 area, which may pull the price down as Mean Reversion.
Moreover, the MACD lines are residing above 0.00 line, but Bearish cross over is currently in the making. Therefore, If the MACD line crosses each other down, EURUSD Bears may find confluence and push lower in the process.
EURUSD Bearish Trend may Continue Towards 1.08 Again
According to the Daily chart, EURUSD impulsive Bullish run rejects 1.1050 resistance after a retracement. The bearish trend may continue if Bears can hold the price below 1.1050 with a daily close.
image: EURUSD Daily Chart
The dynamic level of 20 EMA is residing inside 1.0950-1.0980 range are, along with the Kijun line and the Tenkan line, which is still indecisive. Moreover, the MACD lines are residing below the 0.00 level. It may maintain momentum as Bears continue to push lower.
To conclude, EURUSD may decline towards 1.0920 area again if the price manages to remain below 1.1050 with a daily close. Despite the recent intense Bullish pressure, Bears are still quite strong to continue the downward run.