EUR/USD Technical Analysis- Can Bears Hold the Price Below 1.20?
May 06, 2021|The Forex Secret –EUR/USD moved lower to 1.20 but became very volatile at this level. Therefore, investors may expect that the price will move lower in the coming days. Let’s have a look at EUR/USD technical analysis from the Forex secret team.
EUR/USD- Price is Unstable at 1.20 Level
EUR/USD is the most traded currency pair in the world that usually provides a daily average of 60 to 100 pips movement. If you look at the previous price action you would see that the price moved down from 1.2150 level with strong bearish pressure.
Therefore the previous expectation was that the price may come below the 1.20 level and will push lower.
However, the price failed to come below 1.20 level with the daily close that made the bullish possibility invalid. Moreover, the dynamic support appeared to the 1.20 level that is providing a bullish pressure on the price.
Therefore investors should wait for a daily close at 1.20 level where a strong bullish daily candle will indicate further about the upcoming bullish pressure.
Is EUR/USD A Sell?
As of the above discussion, EUR/USD is facing support from the dynamic level of 20 EMA on the daily chart with static support at the 1.20 level. Investors should remain cautious at this level and think twice before entering the trade.
As long as the price is trading near the 1.20 level, make sure to follow this trading idea:
For Buy: Wait for a daily close above the dynamic 20 EMA and buy from intraday retracement.
For Sell: Wait for a daily close below 1.20 and allow the market for a correction before entering the trade.