It was assumed that the pair will return to the downtrend after trading the zone of the previous daily peak (~1.0990). Monday was the time when negative world news that came out over the weekend became a trigger for the opening of the Pacific and Asian sessions. The relay was picked up by the markets of Russia and Europe, and then the United States joined the trend.
After closing on Friday at ~1.0984, on Monday (04.05.20), the cross rate of the EURUSD pair was at 1.0914, pulling the position out of the minus with the lot already doubled. The current level of entry into the Market was attracted by increasing the lot size and thereby reducing the drawdown distance by half. Now the price is already trying to trade in the positive zone. However, tomorrow, on Tuesday 05.05.20., there will be an important decision of the German court, which can create volatility in the Market. Also, we expect data on unemployment in the US, this is also volatile news. In General, neither the bulls nor the bears are feeling determined yet. We need to wait until tomorrow to see exactly how the Market will trade such news.
Meanwhile, the pair is trading with a bearish mood, because as a result of the European session, the traded horizontal corridor with a 10-fold change in the vector was finally broken towards the South. Although everything can change quickly and easily, at this stage, this is a good sign for bears and for an open sell position.
If the pair starts a sudden growth, it will remain to watch it until the area of the second daily crisis peak ~1.1140 is reached. However, on the approach to it, there is still a daily vertex from 03.02.20. Therefore, the price may rest against it before reaching the correction goal of 1.1140. But this is a matter of technique. The trader works with consequences. So we'll just wait for developments.
While it is possible to state another confirmation of the fundamental technique. And the MT5 trading platform has once again shown its advantages, allowing you to increase the volume of operations performed, and move the level of entry into the Market to a more profitable value.
The EURUSD could find a support around the 1.0800 level, but it could drop to the 1.0700 zone again. Eventhough the pair tried to break above the 200 day EMA and the 1.1000 level, the bearish trend is still in place.