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EURUSD is testing a major support area!

Monday, February 17, 2020 2:30 PM GMT

Obviously EURUSD is having a heavily bearish bias and is holing near to nearly 3-year lows. There are major concerns for the EU economy growth sustainability while on the hand US figures are getting better week by week. Additionally, we should also take into account the coronavirus uncertainty and its effect on the market!

Reviewing the technical view of the pair and starting from the weekly chart, it has formed 2 bearish candlesticks which has pushed price to a major support area between 1.0867 – 1.079. Its worth mentioning there is the major Fibonacci retracement level 78.6% in the same zone as well as the lower side of the declining channel (C1). This week’s candlestick formation is very important.

Weekly

Heading to the daily chart, the pair reached the target of Fibonacci extension level 161.8%. The bias remains strongly bearish and has moved almost vertically to the downside. Its too early to evaluate the current daily candlestick.

Daily

Ending with the hourly chart, EURUSD is forming a falling channel (C2) which has been recently tested. As long as the channel (C2) remains intact, we are anticipating further pressure to the downside. However, there are important support levels below the current zone. Further to this, MACD has already started forming positive divergence which may indicates selling exhaustion temporarily (though the divergence would be stronger if price records new lows).

Hourly

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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