EURUSD has been quite volatile and corrective from the past few weeks. EURUSD price is currently quite indecisive below 1.0890 area, what is next? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
April 20, 2020 | AtoZ Markets – EURUSD is currently residing near 1.0850 area and trying to push lower. The price faced resistance at 1.0890 area and was also held by the Kumo Cloud. As per the current price action, EURUSD price needs a strong breakout to find a definite trend in the coming days.
EURUSD Indecisive Below 1.0890 as Coronavirus Death Toll Rises
President Donald Trump administration said on Sunday that the U.S. lets importers delay some tax payments. It will help the importers hits by the national health crisis to postpone for three months any tax payments they owe the government. Moreover, the key aims to help businesses hit by the COVID-19 pandemic. Besides, the virus has put millions of American people unemployed, and the number is daily increasing.
Furthermore, Treasury Secretary Steven Mnuchin said in a statement, “President Donald Trump signed an executive order allowing deferred payments to protect American jobs and help these businesses get through this time. Still, the tax deferment policy does not extend to importers of goods caught up in several trade conflicts.” They also added, “Importers of some goods the Trump administration has targeted in trade disputes including solar panels, steel, aluminum and a range of Chinese products, will still need to pay tariffs on time.”
On the other hand, the ECB’s Chief Supervisor, Andrea Enria told on an interview, “The European Central Bank will give banks ample time to return to natural capital and liquidity levels after the coronavirus crisis passes. Besides, we will have to decide on the path to return to the natural capital and liquidity levels on a bank-by-bank basis.”
Can EURUSD Break the Range?
According to the Daily chart, EURUSD is currently residing near 1.0850 area, and the price is quite indecisive. The pair is currently residing insides the ranges of 1.0990 to 1.0810. Moreover, the price has also created a diamond bottom pattern. As per the current price action context, if the price can break above 1.0990 area with a daily close, the bulls may push the price higher towards 1.1230 area in the days ahead. Alternatively, if the price can breaks below 1.0810 area with an impulsive daily close, the bears may push the price down towards 1.0650.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price, along with the Kijun line and Tenkan line. The dynamic levels may work as strong resistance to push the price down. In contrast, if the price can break above the dynamic levels, the bulls may gain momentum in the process. On the other hand, the MACD lines are residing below 0.00 level from an extended period. It indicates that bears are still in the market.
To conclude, as long as the Coronavirus keep harming the U.S. and European economy, EURUSD price action may remain indecisive. A daily impulsive breakout is required to find the definite momentum investors are looking for.