FX.co ★ Technical analysis of EUR/USD for February 06, 2020

Overview:

Pair : EUR/USD.

Trend : narrow side.

Range: 1.0993 - 1.1118.

The EUR/USD pair is trading below the levels of 1.1118 .

It is likely to trade in a lower range as long as it remains below the resistance one (1.1118). In larger time frames the trend is still breaish as long as the level of 1.1118 is not breached.

The resistance level is seen at the level of 1.1118, this resistance has been rejected two times confirming the veracity of a downtrend.

A daily closure below 1.1118 allows the pair to make a quick bearish movement towards the next support level around 1.0993. Short positions are recommended with the first target at 1.0993. A break of that target will move the pair further downwards to 1.0939.

The bearish outlook remains the same, as long as the 100 EMA is pointing to the downside. The bias remains bearish in nearest term testing 1.0993, 1.0939 and 1.0980.

The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 1.1195.