EURUSD may Retrace Higher before Continuing the Bearish Trend leading the price towards 1.0920 area. The Bearish trend is still intact to sustain further. Let’s check EURUSD Technical Analysis for more levels and insights.
February 13, 2020 | AtoZMarkets.com – EURUSD has been quite non-volatile and impulsive with the recent Bearish trend momentum. The Bearish pressure managed to push the price below 1.09 price area and create new lower low as Euro struggles with the USD gains.
Euro is currently stuck near 2.5 years low as Coronavirus cases increase in China. Euro Bulls has been avoiding transaction in Euro since drop in Industrial Production report. Though the biggest Eurozone economies like Germany and Italy is more likely to get into Recession but as per experts, there are still some time to recover.
On the other hand, US Dollar has managed to sustain the Bearish momentum against Euro. Despite the testimony from FED Chairman Jerome Powell, USD managed to remain consistent with the gains. The sentiment of USD gained momentum after NFP report was published better than expected. The Coronavirus outbreak has also impacted the normal economic activity of U.S. but currently there is no requirement for FED to cut rates.
EURUSD may Retrace Higher but Bearish Trend is Still Strong
Currently, EURUSD is pushing higher towards 1.0920 area. The price corrected for certain period recently but instead of continuing lower, the price pushed higher.
image: EURUSD 4 Hour Chart
The price is currently pushing higher which will also find confluence from dynamic levels as it continues lower. The price has been non-volatile and impulsive with the recent Bearish momentum since it rejected from 1.1100 area.
According to 4 hour chart, MACD histogram is squeezing higher. Moreover, the MACD lines below 0.00 level is going through Bullish Crossover. MACD histograms are also showing Bullish Divergence in the making. So, as per current price action, there are higher chance of price to push higher towards 1.0920 area before the Bearish trend continues.
Read More – Free EURUSD Trading Signal for February 13, 2020
EURUSD Bearish Pressure to Continue further?
image: EURUSD Daily Chart
According to daily chart, the price is currently residing quite far from the dynamic level 20 EMA. As per Mean Reversion price action, there are higher chance for EURUSD to pullback higher towards 1.0920 to 1.10 area. As the preceding trend is Bearish and also strong enough to sustain, certain retracement will help Bears to hop in again.
Though there is no sign of Bullish Divergence in MACD but as the price reached the Bottom of the recent price cycle, certain Bullish pressure can be seen.
To conclude, EURUSD may push towards 1.0920 or higher as Retracement before Continuing the Bearish trend in place. Currently EURUSD Bulls may continue to push higher despite any down move to take over.