FX.co ★ EUR/USD analysis for 03.13.2020 - Strong downside breakout and potential for even further drop towards the level at 1.0830

News:

European Central Bank deploys stimulus to ease virus damage

The money is newly created and injected into the financial system. It comes on top of purchases worth 20 billion euros a month it is already carrying out, and would be aimed at corporate bonds, which should help keep credit available to companies. The ECB is also providing additional cheap, long-term loans to banks to make sure they have the liquidity they need.

Technical analysis:

EUR/USD did drop strongly as I expected in my previous analysis. The main support pivot is set at the price of 1.1100. The further breakout of that level would confirm even bigger drop towards the level at 1.0800.

MACD oscillator is showing downside cycle and the slow line is bearish, which is confirmation that downside pressure is still active.

Resitance level is now set at the prrice of 1.1250

Important pivot support is set at the price of 1.1100.