EURUSD regaining Bullish Momentum may retest 1.1075 again in the coming days. The price managed to break above the declining channel and on the way higher. Let’s check EURUSD Technical Analysis for more levels and insights.
January 30, 2020 | AtoZMarkets.com – EURUSD is currently residing above 1.10 after certain dips below it recently. The price turned volatile upon reaching 1.10 area after breaking below the 1.1075 area with a daily close earlier. The price is currently pushing higher after breaking above the declining channel which may lead Bulls to hop in again.
U.S. dollar has been quite impressive with the recent Bearish run in the pair against EURO. Moreover, ECB and FED having unchanged policy rates and minimal changes to the upcoming activity lead to further indecision in the market. During Post Meeting Conferece, FED Chairman Powell stated that FED is not happy with the inflation running below 2% and certain changes on the policy may occur in 2nd Quarter of the year.
EURO is currently struggling to gain momentum over USD as ECB has been dovish with the recent meeting and reports. Until EURO shows any sustainable promise in the coming days, USD may sustain the Bearish momentum in the pair.
EURO to regain Bullish Momentum to retest 1.1075?
EURUSD is currently quite volatile at the edge of 1.10 support area. The price turned corrective at the edge of 1.10 and managed to push higher forming a lower high. Moreover, the price is also at verge of breaking above the Kumo Cloud dynamic resistance.
image: EURUSD 1 Hour chart
According to 1 Hour chart, the price is having confluence of the dynamic levels like 20 EMA, Tenkan and Kijun. As the price tries to break above the Kumo Cloud resistance, MACD is showing indication of Bullish Divergence along the way.
The price managed to break above the Channel resistance with strong Bullish momentum despite the recent False Breakout. The Chikou Span (Green Line) has also confirmed the upward pressure by breaking above the price line resistance as well.
After the price managed to break below the EURUSD Head and Shoulder pattern neckline at 1.1075, it has not retested it yet. So, as per current trend, a retest at 1.1075 with a Bullish pressure to continue with the Bearish trend is expected. As of the current confluence in line, the Bullish momentum may live for short time in the process.
EURUSD Bearish Bias may lead the price to 1.0920
EURUSD has been in a strong Bearish Bias since it rejected off 1.1240 area with a daily close. The Bearish trend has been non-volatile and impulsive with the momentum which broke below 1.1075 area as well.
image: EURUSD Daily Chart
After 2 consecutive days of Bearish Rejection with daily candles, the price is currently pushing higher. As per current Bullish pressure, the price of EURUSD may retest 1.1075 resistance area before continuing the Bearish trend in place. After the price broke below 1.1075 area with a daily close, it is going to be the first time in recent price action that the price will retest the support as resistance.
Moreover, the dynamic level 20 EMA is currently residing quite far from the current price area. As a result, it might attract the price to revert back to the Mean before continuing the trend with target towards 1.0920. As the price reamins below 1.1200 area with a daily close, the Bearish Bias may continue in this pair.
To Conclude, EURUSD may pullback higher towards 1.1075 area before continuing the Bearish Trend in place. As the trend continues, 1.0920 is going to be upcoming support for regaining Bullish Momentum.