March 2, 2021 : EUR/USD daily technical review and trade recommendations.
The previous episode of upside movement was expressed above the depicted uptrend line (in blue) towards 1.2250 then 1.2350 before the current downside reversal was initiated.
Bearish closure below the mentioned price zone around 1.2250 enabled a quick downside decline towards 1.2170 which corresponded to a previous congestion zone as well as a prominent key-zone.
Persistence below the price level of 1.2170 has turned the intermediate outlook for the pair into bearish and enhanced further downside decline towards 1.2080, 1.1990 and 1.1950.
However, extensive Buying Pressure existed around 1.1950, leading to the recent quick upside spike above 1.1990 again.
Buying pressure was applied on the pair. That’s why, the RECENT upside movement extended towards the resistance level around 1.2175 which failed to offer sufficient downside pressure on the pair.
Hence, more upside movement was expressed towards 1.2250 where significant SELLING Pressure was found, leading to the current downside movement towards 1.2040.
The price zone of (1.2040 down to 1.1990) corresponds to the previous Weekly Low which may provide some buying pressure. If so, upside pullback movement towards 1.2100-1.2120 should be expected.
Conservative traders were advised to SELL the EURUSD Pair anywhere around the Resistance Level of (1.2250). It’s already running in profits. Stop Loss should be lowered to 1.2120 to secure profits.
Intraday traders should be looking for a BUY Entry anywhere around 1.1990 if early downside pullback occurs.
The material has been provided by InstaForex Company – www.instaforex.com