ZuluTrade Blog

EURUSD is breaking out 200SMA

Market View | Wednesday, May 27, 2020 1:12 PM GMT

A big debate has been initiated among EU countries about how they should use the planned European Recovery Fund to deal with the consequences of coronavirus. The Netherlands supports the loan-scheme while Germany and France prefer the grant-model. As Armin Laschet said "We need an emergency recovery fund to stimulate the recovery. We believe this should consist of loans, without any mutualization of debts,". Additionally, François Villeroy de Galhau said that ECB might have to emulate the Federal Reserve’s Main Street Lending Program, statement which acts supporting for EURUSD.

Reviewing the technicals, and starting from the daily chart, EURUSD is currently moving above 200SMA as was consolidating below it for days. There is already a bullish crossover of 20EMA with 50SMA. 

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EURUSD daily chart

Heading to the hourly, the pair is moving above the trendline, and traders may consider the blue area as short-term support. All moving averages are looking bullish and the price has already bounced on 20EMA and 50SMA. Last but not least, buyers must monitor the potential negative divergence on RSI and MACD.

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EURUSD Hourly chart

Checking the ZuluTrade’s Traders Sentiment, the community is currently selling EURUSD..


In focus this week (economic calendar):

EuropeanMonetaryUnion - ECB's President Lagarde speech


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