EURUSD Technical Analysis- 1.20 Key Level in Focus
EURUSD price moved up at a rapid speed due to the dovish tone during the FOMC. The Fed showed a tension about the economic growth last night and Eur along with other major currencies got an immediate reaction against the US Dollar. Currently, 1.20 Key level in Focus where investors should focus on how to price reaction on this level. See the details about USD/JPY technical analysis from TheForexSecret analysts.
March 18, 2021|The Forex Secret – EURUSD gained a bullish momentum as soon as the Fed showed tension over the US economy. However, as long as the price is trading below the 1.20 key level, we may expect further bullish pressure in the price.
EUR/USD Daily Outlook
EURUSD broke below the 1.20 key level with an impulsive bearish pressure earlier this month and the current momentum is still in the market.
Price made a low of 1.8330 and became volatile for more than a week. Therefore, the price has a higher possibility to continue the bearish pressure following the profit taking.
Here we can see that the price is getting resistance from the dynamic level of 20 EMA that moved below the 1.20 level and just above the candle’s high. Therefore, any bounce back from this level in the intraday chart would be a great selling opportunity. However, the bearish sentiment is valid as long as the price is trading below the 1.20 level. Any daily close above this level may alter the current market structure.
EUR/USD Intraday Sell Setup
In the H4 chart, the price made a potential double top pattern below the 1.20 level in the H4 timeframe where a candle closes below 20 EMA would increase the selling possibility.
However, if the candle moves higher and closes near the 1.20 level the current bearish setup may become invalid and in that case, the price may move higher by becoming extremely volatile.
How to sell trades in EUR/USD?
If you want to join the upcoming bearish rally, you should be cautious as the price is backed by a strong bearish trend. Therefore, you can look for intraday event levels and enter the trade only these levels are rejected by an appropriate candlestick formation.
Based on our review. EURUSD is a sell despite the dovish Fed. Therefore, if you want to join the bearish rally, you should wait for an appropriate candle pattern to form based on your strategy. Always try to minimize the risk by not taking more than 2% risk per trade.