FX.co ★ Technical Analysis of EUR/USD for 05/05/2020:

Technical Market Outlook:

After a Shooting Star candlestick pattern has been made at the top of the move, the EUR/USD market reversed back below the high and is currently trading below the technical support located at 1.0893. The momentum is still strong and positive, but the market conditions are overbought, so the odds for another dynamic wave up are decreasing. If the trend line gets violated, then the next technical support is seen at the level of 1.0878 and if broken, the sell-off might accelerate towards 1.0846.

Weekly Pivot Points:

WR3 - 1.1279

WR2 - 1.1141

WR1 - 1.1073

Weekly Pivot - 1.0940

WS1 - 1.0861

WS2 - 1.0728

WS3 - 1.0662

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and this fear still rules on the financial markets. On the EUR/USD pair the main long term trend is down, but the reversal is possible when the coronavirus pandemic will be tamed. The key long-term technical support is seen at the level of 1.0336 and the key long-term technical resistance is seen at the level of 1.1540. Only if one of this levels is clearly violated, the main trend might reverse (1.1540) or accelerate (1.0336).