Technical Analysis of EUR/USD for Apr 7, 2020

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Technical Market Outlook:

The EUR/USD pair has hit the technical support at the level of 1.0767 and is trying to bounce higher. The current price action acts as there is a Double Bottom pattern made around the support, so the odds for a rally are quite high. The first obstacle is the technical resistance located at the level of 1.0888, but the oversold market conditions on H4 time frame chart might be helpful to the bulls. If they manage to break through this level, then in the same time, they will break out of the descending channel, and this should accelerate the rally towards the level of 1.0951. On the other hand, a failure to break out will likely result in deepening the move down and new local lows will be made. The next technical support is seen at the bottom of the swing at 1.0654 and 1.0635.

Weekly Pivot Points:

WR3 – 1.1359

WR2 – 1.1244

WR1 – 1.0981

Weekly Pivot – 1.0872

WS1 – 1.0612

WS2 – 1.0487

WS3 – 1.0228

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. ON the EUR/USD pair the main trend is down, but the reversal is possible when the coronavirus pandemic will be tamed. The key long-term technical support is seen at the level of 1.0336 and the key long-term technical resistance is seen at the level of 1.1540. Only if one of this levels is clearly violated, the main trend might reverse (1.1540) or accelerate (1.0336).

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical Analysis of EUR/USD for 07/04/2020:

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