EURUSD bullish trend has become non-volatile and broke above two years high. Will EURUSD break above 1.18 key resistance area in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
July 30, 2020, | AtoZ Markets – EURUSD is currently trading around 1.1750 area and trying to climb higher. The price found support on the rising flag, also on the dynamic level of 20 EMA on the intraday chart. As per the current price action, the dynamic level of 20 EMA may work as strong support to push the price higher in the coming days.
The U.S. economy is feeling the heat of the Coronavirus pandemic second wave. COVID-19 has destroyed consumer and business spending, potentially wiping out more than five years of growth. Besides, the Dollar index has dropped significantly and reached at 2018’s low.
On the other hand, Federal Reserve Chairman, Jerome Powell said, “More fiscal policy will be expected to offer support to the monetary recovery, which is in danger of easing as coronavirus cases spike in a few states.”
He also added, “A few proportions of consumer spending, in view of debit card and credit card use have declined since late June. While recent labour-market highlight an easing back in employment growth, particularly in smaller organizations.”
EURUSD Break Above as the United States Facing a Historical Economic Drawdown
EURUSD is currently residing near 1.1750 area and trying to recover higher. In addition, EURUSD has faced strong resistance around 1.18 area and had a daily close below it.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD is currently trading around 1.1750 area and trying to break above. As per the current price action, if the price can have a bullish close above the rising flag support, the bulls may recover higher towards 1.18 area again. Alternatively, if the price can break below the rising flag support and closes below 1.17 support area, the bears may regain momentum and decline towards 1.1570 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which has already worked as strong support. Besides, the Bollinger Bands middle band also worked as a confluence of the dynamic level. It indicates that bulls may recover further in the coming days.
EURUSD May Revert Back to the Mean
According to the daily chart, EURUSD bulls are optimistic may break above. As per the current price action, if the price can have a daily bullish close above 1.18 resistance level, the bulls may push the price upside towards 1.19 area in the coming days. In contrast, if the price breaks below 1.17 support area, the bears may regain momentum and push the price downside towards 1.1570 area in the days ahead.
Image: EURUSD Daily Chart
In addition to this, the dynamic level of 20 EMA is currently residing far below from the price. It may pull the price down as a mean reversion. Also, the MACD lines are currently residing above 0.00 level and may have a bearish intersection. Along with, the RSI line is currently residing above the overbought level 70 and trying to move downside. It indicates that bears may regain momentum for a while in the coming days.
To conclude, EURUSD has gained more than 300 plus pips after breaking 1.1450 key resistance and may recover further. A daily close is required to identify the definite momentum in the coming days.