Technical Market Outlook:
The EUR/USD pair has broken below the key Fibonacci retracement level located at 1.1917 and the new local low was made at the level of 1.1885 (at the time of writing the analysis). Moreover, the market is clearly below the short-term trend line support, so the bears are now in full control of the price. The next target for bears is seen at the level of 1.1704, which is the low from the end of March 2021. The immediate technical resistance is located at the level of 1.1953.
Weekly Pivot Points:
WR3 - 1.2289
WR2 - 1.2243
WR1 - 1.2141
Weekly Pivot - 1.2125
WS1 - 1.2038
WS2 - 1.2001
WS3 - 1.1909
Trading Recommendations:
The daily time frame chart show the market coming off the overbought conditions and neutral to negative momentum, so the distribution cycle is being continued. When this cycle is terminated, the up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021).
