Technical Market Overview:
The EUR/USD pair has bounced from the level of 1.0654 and is currently testing the local technical resistance located at the level of 1.0778 (key short-term resistance). In a case of a bounce, the next target for bulls is seen at the level of 1.0951, but this scenario is possible only if the momentum oscillator break higher through 50 levels. The market conditions are oversold on the H4 timeframe with momentum oscillating below the neutral level. If rally/bounce will fail, then 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.
