Technical analysis of EUR/USD for 07/02/2019

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

Trading recommendations:

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.

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