EURUSD Sets Recovery in Motion, Bounces off Lows Toward the Level at 1.0879

EURUSD Price Analysis – February 24

The EURUSD begins the fresh week under pressure with a bearish gap after the weekend reports showed a spike in confirmed cases of coronavirus worldwide, especially in Italy and South Korea. The Fx pair has erased its serious over-sold conditions but was unable to run beyond its current daily slump at the level of 1,0879.

Key Levels
Resistance Levels: 1.1239, 1.1172, 1.1094
Support Levels: 1.0827, 1.0779, 1.0700

EURUSD Long term Trend: Bearish

EURUSD is trading in a downtrend beneath its key moving daily average of 13 as the market bounces from 34-month lows. In the larger structure, the downward trend from 1.1515 (high level) has just resumed and long-term bearishness is affirmed by prior rejection through horizontal resistance zones.

A sustained break of 78.6 percent from 1.0779 (low) to 1.1515 at 1.0827 level may lead the way to a low level of 1.0779. For now, the trend may remain bearish as long as 1,1239 level of resistance remains intact, in the event of a strong rebound.

EURUSD Short term Trend: Bearish

Intraday bias in EURUSD remains neutral from level 1.0779 for consolidation. Another rebound may be seen but a 38.2 percent retraction of 1.1094 to 1.0779 at 1.0879 level should be limited to the upside.

On the downside, the 1.0779-level break may continue a larger downward trend. However, to produce a deeper pullback up to the 1.0940 and 1.0981 stages, the spot may require breaking beyond the 1.0879 resistance level.

Instrument: EURUSD
Order: Sell
Entry price: 1.0879
Stop: 1.0900
Target: 1.0779

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