EUR/USD analysis for March 06, 2019

EUR/USD has been trading downwards. The price tested the level of 1.2918, but the selling climax appeared.

According to the H1 time frame, we found a selling climax (unusually wide range bar) in the background, which is a sign that there were panic sellers and a lot of emotional sellers. The market doesn't like panic activities and that is the reason why we expect a rally for the EUR/USD pair. Key intraday resistance is set at 1.1311. The breakout of the 1.1311 level would confirm a potential test of 1.1338 and 1.1380.

Trading recommendation: We are waiting for a potential breakout of 1.1311 to open a long position with the target at 1.1338 and 1.1380. Protective stop can be placed at 1.1285.