Technical analysis of EUR/USD for 19/03/2020:

Technical Market Overview:

The EUR/USD pair has broken below the technical support located at the level of 1.0951 and made a new local low at the level of 1.0802. This level is very close to the key short-term support located at the level of 1.0778. The market conditions are oversold on the H4 timeframe with momentum oscillating below the neutral level. In a case of a bounce, the next target for bulls is seen at the level of 1.1050, but this scenario is possible only if the momentum oscillator break higher through 50 levels. Otherwise, the downtrend will continue as the financial markets are not done with the coronavirus pandemic fears.

Weekly Pivot Points:

WR3 - 1.1749

WR2 - 1.1625

WR1 - 1.1316

Weekly Pivot - 1.1171

WS1 - 1.0880

WS2 - 1.0735

WS3 - 1.0438

Trading Recommendations:

The downtrend was valid as long as it was terminated or the level of 1.1445 clearly violated, so now all upward moves will not be treated as local corrections in the downtrend, but as a new uptrend. The Ending Diagonal price pattern visible on the larger timeframes like weekly has been completed and the EUR/USD is developing a new wave up.

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