EURUSD Bulls sustained above 1.0640 area, and the price may recover higher. Despite the recent Bearish pressure, Bulls may take over for short-term. Let’s check EURUSD Technical Analysis for more levels and insights.
March 23, 2020 |AtoZ Markets – EURUSD is currently residing near 1.0780 area after a massive drop. EURUSD dropped more than 800+ pips in just two weeks after the U.S. Dollar Index reached its all-time high. As per current price action, if EURUSD is maintained above 1.0640 area, it may recover higher in the coming days.
The U.S. Dollar fell on Monday as the U.S. politicians disagreed about the details of the latest rescue package. The U.S. politicians do not agree to the funding package of more than $1 trillion. As a result, this funding package did not get enough votes in a key Senate procedural late Sunday.
On the other hand, Danske Bank Official said, “We see EURUSD heading lower still in the near term, as broad USD strength set to continue to reign.” Danske also added, “Despite extreme fiscal and monetary policy action across countries, we deem that it will be hard to find renewed confidence in the EUR given the institutional set-up in general and the German reluctance to use fiscal easing specifically. As a result, we expect EUR/USD to linger in the 1.07 area for an extended period.”
EURUSD Bulls Sustained Above 1.0640
EURUSD is currently residing near 1.0780 area and trying to recover higher. After the price bounce from 1.0640 area, EURUSD is presently pushing the price higher quite impulsively.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, the price is currently residing near 1.0800 area after EURUSD Bulls sustained above 1.0640. EURUSD found strong support at 1.0640 area after certain volatility and bounced higher. The dynamic level of 20 EMA is residing below the current price while failed to hold the price as resistance. So, if the price breaks above the dynamic level with a close, the Bulls may push the price higher towards 1.0930 area in the coming days.
On the other hand, the MACD indicator lines are residing below 0.00 level and intersecting each other as a Bullish cross over.
EURUSD Bears Held by Descending Channel Support
According to the Daily chart, EURUSD is currently trading at 1.0780 area while trying to recover higher. After a massive drop from 1.1490 area, EURUSD pushed the price lower inside the descending channel again. As per current price action, EURUSD may recover higher towards 1.0930 area before Bears continue the Bearish trend towards 1.0640 again.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is residing above the current price and also our expected area 1.0930. As a result, it may pull the price higher as a Mean Reversion towards 1.0930 area. On the other hand, the Stochastic Oscillator lines are residing below the oversold level 20 and may intersect each other as a Bullish cross over while providing required confluence to the upcoming Bullish momentum.
To conclude, EURUSD is currently impulsive with the Bullish pressure and may recover higher towards 1.0930 area. Despite the recent Bearish impulsive pressure, Bulls may regain and sustain the momentum for a certain period.