Author – Bilal Jafar
The EURUSD on the 4-hour timeframe remains under extreme selling pressure as the currency pair reached 1.08847, a level not seen since October 2019. The pair dipped below the key level of 1.09000 on February 12 and registered the lowest level of the period under study at 1.08847. Price action in the EURUSD is mainly driven by the recent strength in the US Dollar.
On the technical side, sellers are keeping a close eye on the lowest level of 2019 at 1.08789. A break below this level could strengthen the argument for further bearish movements. The price is currently trading below the 50-period Simple Moving Average with negative Moving Average Convergence/Divergence (MACD).
As the 4-hour chart illustrates, the currency pair is making successively lower tops and lower bottoms since January 31. As of writing, the price is hovering around 1.08938. Bears are in full control of the market as the current price is trading near the lowest level of 2020.
By applying Oscillators analysis, all four key technical indicators confirm the negative bias in the market. As the chart shows, the price is currently trading below the 50-period Simple Moving Average. The MACD is recording values below the zero-line. As of now, the momentum is below the key level of 100, which shows that the downside move is strong. Relative Strength Index is showing values below the 50 mark which supports the selling pressure.
In an alternative scenario, the key resistance level lies at 1.10957 registered on January 31, bulls must break this level in order to regain the bullish sentiment.
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