EURUSD may Retrace Higher before Continuing the Bearish Trend with target towards 1.0920 support area. As per current correction, it may push higher. Let’s check EURUSD Technical Analysis for more levels and insights.
February 10, 2020 | AtoZMarkets.com – EURUSD has been quite impressive with the recent Bearish momentum. The impulsive Bearish pressure managed to break below 1.10 support area with strong momentum which is may retest before continuing.
As per recent reports, Eurozone Investor Confidence declined in February. Moreover, German Manufacturing Recession also added to the downturn. Moreover, the positive Employment report from U.S. side helped USD to regain and sustain the Bearish pressure along the way.
Ahead of ECB President Lagarde’s speech tomorrow, certain volality and correction may occur in the market. Though EURO might remain under pressure but certain downturn on the USD may lead to retracements.
EURUSD Correction may Retrace Higher again
EURUSD is currently struggling at the edge of 1.0950 area. The price has been ranging in the price area throughout the day despite the strong Bearish bias in place. Though the Bearish bias is still strong, EURUSD can retrace higher before continuing the Bearish trend.
image: EURUSD 4 hour chart
According to 4 hour chart, the price is currently correcting at the edge of 1.0950 area. After the strong Bearish close below 1.10 area recently, the Bearish trend is still quite strong to dominate the market further. Euro struggling with certain economic slowdown is having hard time regaining over USD in the process.
EURUSD Bearish Trend is still Strong to continue
Moreover, MACD histogram is squeezing higher indicating Bullish Continuous Divergence along the way. The dynamic level 20 EMA is residing a bit far from the current price. As per Mean Reversion rule, price may push higher to find confluence before EURUSD continue the Bearish trend with target towards 1.0920 support area in the coming days.
To conclude, EURUSD has greater probability to push higher as retracement despite current impulsive Bearish bias. The price may retest 1.0990 area before EURUSD continue the Bearish trend in place.