FX.co ★ Technical analysis of EUR/USD for April 07, 2020

Overview:

Coronavirus (COVID-19) continues to spread, concentrating fears of deeper economic crise.

The EUR/USD pair continues to move downwards from the level of 1.1035. Yesterday, the pair dropped from the level of 1.1035 to the bottom around 1.0801.

The pair has rebounded from the bottom of 1.0801 to close at 1.08031. Today, the first support level is seen at 1.0757, the price is moving in a bearish channel now.

Furthermore, the price has been set below the strong resistance at the level of 1.1035, which coincides with the 78% Fibonacci retracement level.

This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend.

As a result, if the EUR/USD pair is able to break out the first support at 1.0757, the market will decline further to 1.0636 in order to test the weekly support 2.

Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.0892 with the first target at 1.0757 and further to 1.0636.

On the other hand, stop loss is to be placed above the level of 1.1075.