EURUSD recovered higher at 1.11 resistance area and may continue further. After bounced from 1.08 key support area, EURUSD reached 1.11 quite impulsively. Let’s check EURUSD Technical Analysis for more levels and insights.
March 2, 2020 | AtoZ Markets – EURUSD has been quite non-volatile and impulsive after rejecting the 1.08 support area. Despite the recent Bearish trend in place, the Bulls were able to push higher. Bulls are retesting the same resistance 1.11 area again, where it was rejected before.
The dollar weakened against the Euro on Monday, as growing expectations of the United States interest rate cut on fears of Coronavirus impact. Federal Reserve Chairman Jerome Powell said earlier, “The Central Bank will act as appropriate to support the economy.” Additionally, Westpac Chief Economist Bill Evans said, “This statement is likely to be seen as a call to action for other Central Banks around the world.”
The growing concern about the outbreak of novel Coronavirus, the Bank of Japan said that they would support the financial market. The BOJ also added, “Will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases.” On the other hand, U.S. ISM Manufacturing PMI is coming today at 9:00 pm. If actual comes higher than forecast, it may help USD to regain momentum again.
EURUSD Recovered Higher & May Continue Further Towards 1.118
EURUSD is now residing above 1.110 area after rejecting 1.08 key support. Despite the recent Bearish trend in place, EURUSD reached higher quite impulsively. Bullish pressure may sustain further higher towards 1.118 area in the coming events.
image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD is now residing near 1.111 area after breaking above 1.110. Bullish may continue its trend further, but certain corrections may be needed. The dynamic level of 20 EMA is residing far below from the current price near 1.10 area. It may pull the price down as a Mean Reversion, and the Kijun line and the Tenkan also may work as the confluence of 20 EMA.
Moreover, the MACD lines are residing above 0.00 line, and the MACD histogram volumes are also above 0.00 line. It is a good indication that Bullish pressure may sustain further towards 1.118 area.
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EURUSD Bullish Run May Continue Further after Retracement
According to the daily chart, EURUSD reached higher towards 1.110 area quite impulsively after rejecting 1.08 key support. Despite the strong Bearish pressure, Bulls are taking over the market and may continue further. The dynamic level of 20 EMA is residing far away from the current price, along with the Kijun line and Tenkan line. It may pull the price as a Mean Reversion. If Bears successfully pull the price down towards 1.10 for a retracement, Bullish pressure may continue further with the target of 1.118 event level.
image: EURUSD Daily Chart
To conclude, EURUSD may retrace towards 1.10 area to find support. If the price is able to retrace towards 1.10 area, the Bullish run may continue further with the target of 1.118 event area in the coming days.