Technical Market Outlook:
The EUR/USD pair has bounced towards the level of 1.1994, which is the key short-term technical resistance for the bulls, but the wave up was not strong enough to break through this level. Nevertheless, if the bulls will violate 1.1994, then the next target is seen at the level of 1.2023 and 1.2091. If there is no breakout above this level, then the down move will likely resume lower towards the 1.1835 and below. Moreover, the recent move down from the top located at 1.2349 is the biggest correction since March 3rd 2020, so the price overbalance is done and the market might be changing the trend soon.
Weekly Pivot Points:
WR3 - 1.2176
WR2 - 1.2081
WR1 - 1.2020
Weekly Pivot - 1.1926
WS1 - 1.1871
WS2 - 1.1786
WS3 - 1.1716
Trading Recommendations:
Despite the recent correction to 61% Fibonacci retracement of the last wave up the long term trend on EUR/USD pair remains up on monthly time frame chart, however the weekly time frame chart show the counter-trend corrective cycle is in progress. This corrective cycle has not been completed yet, because the key level for bulls is located at 1.1608. As long as the market trades above this level the up trend is valid and all of the down waves should be used to open long positions.
