Technical Market Outlook:
The EUR/USD pair has reversed all the yesterday's gains ad the volatility is subdued, which is typical for a Falling Wedge pattern in progress. The strong technical support had been established at the level of 1.1761 and the bears had failed to break through it many times already. In a case of a breakout to the upside, the next target is seen at the level of 1.1820 (the key short-term resistance) and 1.1850. The corrective cycle can be terminated if the level of 1.1883 is clearly broken. The rising momentum supports the short-term bullish outlook, but the market still trades inside of a narrow range. No major breakout yet.
Weekly Pivot Points:
WR3 - 1.1888
WR2 - 1.1859
WR1 - 1.1808
Weekly Pivot - 1.1781
WS1 - 1.1732
WS2 - 1.1699
WS3 - 1.1653
Trading Recommendations:
The down trend continues with a new swing low being made around the level of 1.1761. The key long term technical support is seen at 1.1704 and the Falling Wedge pattern is being made around this level. 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).
