EURUSD regained Bullish Momentum pushing above 1.11 despite recent Bearish trend in place. After certain correction at 1.1090 area, the price shot higher engulfing previous price actions. Let’s check EURUSD Technical Analysis for more levels and insights.
January 21, 2020 | AtoZMarkets.com – EURUSD regained strong Bullish Momentum pushing above 1.11 as well as Engulfing the consolidating price action along the way. The price is currently residing above 1.1100 area with a strong Bullish Candle communicating Bullish presence.
EURUSD has been quite corrective since the week started. The price did manage to push below 1.11 area but could not sustain the momentum as per preceding trend. Ahead of ECB Policy Decision on Thursday, certain gains on the EURO side is indicating further upside pressure may occur. ECB can review their current strategies for any required changes but not much of significant change is expected.
As per recent Bullish intervention, EURO investors seem to have keen eye on ECB policy event. On the other hand, good US ecostats helped USD to gain impulsively. Despite cerain dissapointing data from US, the Retail Sales and Housing Starts data helped USD to sustain gains.
EURUSD pushing higher ahead of ECB Policy Rate
The price is currently pushing higher above 1.1100 area with strong bullish pressure. Despite certain postive USD economic reports, ahead of ECB Policy Event on Thursday, EURO managed to push higher today. As the price started to consolidate reaching the support area of 1.1090, such Bullish Engulfing candle can help reverse the trend for certain period.
Though EURUSD Bearish Trend may still continue towards 1.10, but certain move higher in the coming days can be considered as pullbacks. The price broke above the dynamic level while MACD lines breaking above 0.00 level added to the confluence. Currently there is no sign of Bearish Divergence along the way but certain correction may occur.
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image: EURUSD 4 Hour Chart
According to 4 Hour Chart, the price formed Bullish Divergence while pushing lower from 1.1100 to 1.1075 area. Additionally, the MACD lines are crossing each other currently below 0.00 area which also indicates Bullish pressure is in the making. Though the price is heading higher but dynamic level 20 EMA may act as resistance in the process. As a result, a break above 1.1120 with a 4 hour candle requires to confirm the upcoming Bullish momentum.
EURO to remain Bullish ahead of Policy Event
EURO may sustain the Bullish momentum it acquired recently ahead of ECB Policy Rate decision. The price recently bounced off the long-term Trend line support as well as the 1.1075 support area. MACD lines are currently above 0.00 area and may jump higher as the price push upside. Despite the current Bullish confluence, certain correction is still expected until today’s daily close. A daily close above 1.1120 will confirm the sustainability of Bullish pressure in the coming days.
image: EURUSD Daily Chart
To Conclude, EURUSD is currently heading towards 1.1175 to 1.1200 area. If price manages to close above 1.1120 with a daily candle, further upside pressure may occur.