Technical Analysis of EUR/USD for March 08, 2021

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Overview :

The EUR/USD pair is testing a confluent area of resistance ahead of the weekend, marked by a 23.6% Fibonacci retracement at 1.2020 and the underside of a prior bearish trendline that projects into the same nearness.

Resistance will bet set at the levels of at 1.2020 and 1.2096 will also likely add conviction to the bearish narrative, and may activate longer-term breakout selling interest.

In terms of trend, the primary downtrend has been in play since price broke the 1.2020 resistance.

The EUR/USD pair continues to move downwards from the level of 1.2020.

The pair dropped from the level of 1.2096 (this level of 1.2096 coincides with the double top) to the bottom around 1.1915.

Today, the first resistance level is seen at 1.2020 (the weekly pivot point) followed by 1.2096 , while daily support 1 is found at 1.1971.

Also, the level of 1.2020 represents a weekly pivot point for that it is acting as major resistance this week.

Amid the previous events, the pair is still in a downtrend, because the EUR/USD pair is trading in a bearish trend from the new resistance line of 1.2020 towards the first support level at 1.1971 in order to test it.

If the pair succeeds to pass through the level of 1.1915, the market will indicate a bearish opportunity below the level of 1.1915.

If the NZD/USD pair fails to break through the resistance level of 1.1915 today, the market will decline further to 1.1871 and then try to reach 1.1800 (major support).

However, if a breakout happens at the resistance level of 1.2096, then this scenario may be invalidated. - The market is still in a downtrend. We still prefer the bearish scenario in coming two or three days.

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

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