Technical analysis of EUR/USD for 09/01/2020:

Technical Market Overview:

The EUR/USD pair has broken below the local technical support seen at the level of 1.1123 and made a fresh new local low on its way down at the level of 1.1100. Currently, the price is moving up and down in a narrow zone between the levels of 1.1103 - 1.1117 as the traders wait for move continuation. The larger timeframe trend remains down, so the pressure for bears intensifies and if the key technical support located at the level of 1.1006 is violated, then the sell-off might accelerate towards the level of 1.1065 and below.

Weekly Pivot Points:

WR3 - 1.1326

WR2 - 1.1283

WR1 - 1.1212

Weekly Pivot - 1.1166

WS1 - 1.1101

WS2 - 1.1048

WS3 - 1.0979

Trading Recommendations:

The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.1040 and the technical resistance at the level of 1.1267.

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