Technical analysis of EUR/USD for 07/02/2019:
The pair is sinking deeper towards the key support zone
Technical market overview:
The EUR/USD market is still continuing its drop towards the key technical support zone located between the levels of 1.1324 – 1.1336. The market has made a candlestick formation called Three Soldiers two times in a row on its way down, so the momentum is strong behind the move, but the market conditions are now oversold, so a local pullback towards the local resistance at the level of 1.1390 might occur before the move downwards continues.
Weekly Pivot Points:
WR2 – 1.1577
WR1 – 1.1517
Weekly Pivot – 1.1454
WS1 – 1.1390
WS2 – 1.1330
All the sell orders from yesterday should be closed with profits as all the TP levels have been hit. Those sell orders that are still open should have a trailing stop loss order placed tight as the risk of a pullback is high. The current target is the support zone between the levels of 1.1324 – 1.1336. The key level to the upside is seen at 1.1434 and only when this level is violated clearly, the short-term outlook might flip to more bullish.
The material has been provided by InstaForex Company – www.instaforex.com