EURUSD has become volatile and indecisive while residing below 1.1840 area. EURUSD volatility increased as the traders are looking forward to Fed Chairman Jerome Powell’s speech today. Will EURUSD Bears regain momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
August 27, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1820 area and trying to decline. The price faced resistance around 1.1840 area several times and had an intraday bearish close below it. As per the current price action, EURUSD may face strong support at the rising flag in the coming days.
The dollar moves downward in the early European session today, with traders looking towards Federal Reserve Chairman Jerome Powell for direction concerning how the national bank may modify its policy structure to support the U.S. recuperation. Moreover, Powell is planned to address the Fed’s yearly national bankers’ gathering later Thursday, generally held in Jackson Hole, Wyoming, however, being led this year in light of the progressing Covid-19 pandemic.
EURUSD Volatility Increased as Investors Are Worried About the U.S. Economy
EURUSD is currently residing near 1.1820 area and trying to push downside. Besides, the price also broke below the dynamic level of 20 EMA on the intraday chart.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD volatility increased and currently residing near 1.1820 area. As per the current price action, if the price can have an impulsive bearish candle close below 1.1840 area, the bears may push the price downside towards 1.1770 area. That is rising flag support. If the price breaks below the rising flag support, the bears may sustain the bearish pressure towards 1.1680 area in the coming days.
Alternatively, if the price reaches 1.1770 area and bounces higher, the bulls may regain momentum and recover higher towards 1.1840 area as a first target. The second target will be 1.1920 area if the price break above 1.1840 in the days ahead.
Besides, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. Besides, the Stochastic Oscillator‘s lines are currently residing near the overbought level 80 and had a bearish intersection. It indicates that bears may continue the bearish pressure further in the process.
EURUSD Bulls Are Still Optimistic
According to the daily chart, EURUSD volatility increased and currently trading around 1.1820 area. As per the current price action context, if the price comes down towards the rising flag support and bounces higher with an impulsive daily bullish candle close, the bulls may recover higher towards 1.1920 area as a first target. The second target will be 1.2080 area if the price break above 1.1920 area in the coming days.
Image: EURUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. The dynamic level may act as a strong support to push the price upside. Besides, the Kijun line may work as a confluence of the dynamic level.
To conclude, after gaining a good amount of pips, EURUSD has become volatile, but the bias is still bullish. A daily close is required to identify the definite momentum in the coming days.