EURUSD bears have pushed the price down impulsively after rejecting 1.19 resistance area. EURUSD to sustain bearish momentum below 1.1800 area? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
September 17, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1790 area and trying to push downside. The price tried to broke below 1.18 psychological area several times but failed to sustain the bearish pressure. As per the current price action, the price may face strong support at the bullish channel in the coming days.
The manner in which Federal Reserve Chair Jerome Powell sees it, the U.S. labour market has far to go to meet the national bank’s most extreme employment goal. He said, “Maximum employment is not something that can be reduced to a number the way inflation can.” Besides, Powell told in a press release after the Fed reported its pledge to keep interest rates low until they are persuaded of the job market’s quality, and that inflation is on target to run over the Fed’s 2% objective for quite a while.
On the other hand, the European Commission suggested on Thursday that EU governments go through money from the 750 billion euro EU recuperation package to support the economy after the COVID-19 pandemic on efficient power vitality, transport and investment in digitalisation. In addition, EU Economics Commissioner Paolo Gentiloni said, “The direction we are giving today means to help the Member States to get ready great public plans in accordance with our regularly concurred destinations. Not just so subsidizing can begin streaming as quickly as conceivable to help the recuperation, yet so it tends to be a driver of really groundbreaking change.”
EURUSD to Sustain Bearish Momentum as U.S. Job Market Is Recovering Slowly
EURUSD is currently residing near 1.1790 area and trying to decline. However, the bears are holding the bearish momentum below the dynamic level of 20 EMA on the intraday chart.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD to sustain bearish pressure and currently trading around 1.1790 area. As per the current price action, if the price can break below the bullish channel support area with an impulsive 4-hour bearish candle, the bears may sustain the bearish pressure towards 1.17 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
Can EURUSD Break Below the Bullish Channels?
According to the daily chart, EURUSD to sustain bearish momentum but still bullish channel support may play strongly. As per the current price action, if the price breaks below the bullish channel’s support with a daily candle, the bears may push the price towards 1.17 area in the days ahead. Alternatively, if the price bounced higher from bullish channel support and had a daily candle close, the bulls may regain momentum and recover higher towards 1.19 area again in the process.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. Also, the MACD lines are still residing above the 0.00 level, but the histograms are remains bearish.
To conclude, after an extended period of volatility EURUSD showing impulsive bearish pressure. A daily close is required to identify the definite momentum in the coming days.