Technical Market Outlook:
The EUR/USD pair has broken below the technical support seen at the level of 1.1835 and made a new local low at the level of 1.1823 (at the time of writing the article) ahead of NFP-Payrolls data release. The bounce was very shallow so far and the bears are still in full control of the market. The next target for bears is seen at the level of 1.1799 and 1.1789. The momentum is weak and negative despite the extremely oversold market conditions. Only a sustained break out above the level of 1.1927 would change the temporary outlook to neutral.
Weekly Pivot Points:
WR3 - 1.2122
WR2 - 1.2049
WR1 - 1.1996
Weekly Pivot - 1.1919
WS1 - 1.1862
WS2 - 1.1786
WS3 - 1.1733
Trading Recommendations:
The distribution cycle had been completed and now the market is on the move down. The key long term technical support is seen at 1.1704. 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).
