Technical Market Overview:
The Federal Reserve reduced interest rates to zero, and the Bank of Japan strengthened its current stimulus at the beginning of the new week. Central banks around the world have taken extensive measures to suppress the economic effects of coronavirus. In response to new information, US futures contracts fell sharply and the bond market jumped. Investors are increasingly afraid that these measures will not be enough to protect the global economy from recession.
The market is trying to bounce from the oversold levels on the H4 timeframe and is currently trading around the first important short-term technical resistance located at the level of 1.1210. The next target for bulls is seen at the level of 1.1250 and with increasing momentum on this timeframe, the odds are high. The key technical support is located at the level of 1.1070.
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.
