Analysis and forecast for EUR/USD on March 24, 2020

Trading 24 mar 2020 Donner votre avis

Hello, dear colleagues!

The topic of coronavirus continues to dominate and influence the global financial markets, so I will start today's review of EUR/USD with COVID-19.

In Italy, 601 people died from a new type of coronavirus over the past day. This is less than in previous days, but it is still a terrifying figure. The number of infected people is approaching 4,800.

The situation in Spain and France is not much better. The COVID-19 epidemic has already claimed the lives of more than 2,000 Spaniards. In France, a total of 860 people died from the coronavirus. In general, Europe has taken perhaps the most severe blow from the epidemic, and the description of the number of infected and dead resembles military reports. Of course, this is a global tragedy. At the same time, it is predicted that the peak of the epidemic has not yet passed. It is expected to occur around the middle of April. I wish it was over sooner.

If you go to the analysis of the euro/dollar currency pair, you should first recall today's statistics. Reports on business activity in the service sector and in the manufacturing sector will be received from Europe and the United States. You can find information about the release time and forecasts for this and other data in the economic calendar.

Now about the technical picture that develops for the main currency pair of the Forex market.

Daily

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Yesterday's trading did not differ in a clear direction. Nevertheless, the support at 1.0636 once again showed its strength and did not let the quote go lower. Yesterday's EUR/USD strengthening started from this mark.

Despite the fact that the candle for March 23 formed a small bullish body, and the previous maximum values were not updated, today at the time of writing, the euro/dollar shows strong growth.

However, there is still enough time before the end of today's trading and anything can happen. Now the pair is trading above the broken support of 1.0777, and the closing price of daily trading relative to this level, as well as the significant mark of 1.0800, will be very important. Apparently, the pair is positive and will try to continue strengthening. In this case, the next target will be the area of 1.0960-1.0980, where the lower border of the Ichimoku indicator cloud passes, and the highs of March 19 are also marked.

Of course, this is far from the current prices, but this is the target area on the daily chart. In addition, there is a 38.2 Fibo level from the fall of 1.1494-1.0636, as well as the Tenkan line of the Ichimoku indicator. In my opinion, the selected price area is very good for opening short positions. The question is whether the pair will be able to rise to the designated values.

H4

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On the 4-hour chart, the price zone of 1.0960-1.0980 indicated above also looks technically reasonable for opening short positions. As you can see, there are 50 simple and 89 exponential moving averages. Above, at 1.1015, there is a 200 exponential, for which a protective stop-loss order should be issued when opening sales.

H1

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If you go to the hourly timeframe, then the nearest sales look from 1.0916, where the 200 EMA passes. In general, I would like to remind you that 1.0900 is a fairly strong technical level, which has had a direct impact on the price dynamics of the euro/dollar more than once or twice.

I believe that the main trading idea for EUR/USD is clear - it is sales after corrective pullbacks to the prices highlighted in this review.

Regarding purchases, I believe that time has already been lost. Since the growth at this stage is of a corrective nature, it is better to skip purchases and open positions on the downward trend.

Success and profits!

The material has been provided by InstaForex Company - www.instaforex.com

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