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12.03.202013:30 Forex Analysis & Reviews: Technical analysis of EUR/USD for March 12, 2020

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Overview:

Bearish outlook.

Technically, the EUR/USD pair fell sharply from the level of 1.1496 towards 1.1250. Now, the price is set at 1.1226. The resistance is seen at the level of 1.1343 and 1.1408. Moreover, the price area of 1.1343 and 1.1408 remains a significant resistance zone.

Therefore, there is a possibility that the EUR/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside.

Thus, amid the previous events, the price is still moving between the levels of 1.1250 and 1.1096. If the EUR/USD pair fails to break through the resistance level of 1.1200, the market will decline further to 1.1096 as the first target. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.1096 so as to in order to test the daily support 2. On the contrary, if a breakout takes place at the resistance level of 1.1408, then this scenario may become invalidated.

Also, it should be noted that Coronavirus and its impact on world currencies, so it will be of the wisdom to be careful at trading. The World Health Organisation has designated the outbreak as a global health emergency.

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