EURUSD Retracing Higher Toward 1.0920 Resistance Area after a certain correction. The Bearish trend may still continue its bias down to 1.0800 support area. Let’s check EURUSD Technical Analysis for more levels and insights.
February 17, 2020| AtoZMarkets.com – EURUSD has been quite impulsive and non-volatile with the recent bearish trend. The Bears recently manage to push the price below 1.0850 area and create a new lower low. Though EURUSD now has become quite corrective after the market opens on Monday, currently certain Bullish pressure is expected.
Today, the United States is celebrating President’s Day while the German Bundesbank is going to set an updated view on the economy in its monthly report. It’s may add some pressure to the other major currencies. Moreover, the German Central Bank may provide comments on the Coronavirus outbreak that has hit China recently. The EURUSD seems to extend its consolidation sideways because of the President Day Holiday.
On the other hand, High impact news German ZEW economic sentiment report is going to publish on Tuesday. It is a leading indicator of economic health. Investors and analysts are currently quite concerned about the outcome and change in their sentiment can be an early signal of future market activity. According to the last economic sentiment news released on January 21, 2020, it was positive at 26.7. The latest forecast says it may decrease to 20.0 on Tuesday and can have a negative impact on Euro gains.
EURUSD Bearish Pressure may Continue After Certain Retracement
Currently, EURUSD retracing higher after a strong Bearish momentum. The price may correct toward 1.0920 area before it pushes lower to 1.0800.
image: EURUSD 1 Hour Chart
According to 1-hour chart, the price is currently pushing higher with the support of dynamic level 20 EMA, along with Kijun line and Tenkan line. After a long correction near 1.0850 area, the Bulls seem to gain momentum quite well. However, EURUSD may push higher toward 1.0920 resistance area, but Bearish pressure still in the market. So, a break above 1.0850 is a must for further upward pressure to build in the process.
Additionally, MACD histogram is squeezing higher as Bullish pressure continues. The MACD lines are also going upward as Bulls taking over the market. So, as per current market price action, there is high chance of price to push higher toward 1.0920 area though certain Bearish correction may be seen along the way.
EURUSD Bears may Face Resistance at 1.0850
image: EURUSD Daily Chart
According to daily chart, the price is currently residing quite far from the dynamic level 2o EMA. As per current price action, there is high chance for EURUSD to pullback higher towards 1.0920 area. As the current bias is Bearish and also strong enough to sustain, Bears have hope to take EURUSD lower toward 0.1080 support area after a certain retracement.
Moreover, the MACD line is sloping down and the histogram is also in favor of Bears. So, as per current price action, Bearish bias is still on the market, but certain Bullish pressure can be seen.
To conclude, EURUSD may push toward 1.0920 as retracement before continuing the Bearish trend in place. Though certain downward correction may occur along the way.