Technical Market Outlook:
The EUR/USD pair has dropped towards the key short-term technical support level located at 1.1752 and made a new swing low at 1.1741. This sell-off occurred just after the NFP Payrolls data from the US were released and the numbers had bear the market participants significantly. It means, the USD is gaining across the boards, so the EUR/USD sell-off might continue this week as well. The next target for bears is seen at the level of 1.1695. Please notice, the current market conditions are extremely oversold, so a bounce should be expected soon.
Weekly Pivot Points:
WR3 - 1.1977
WR2 - 1.1937
WR1 - 1.1832
Weekly Pivot - 1.1791
WS1 - 1.1685
WS2 - 1.1644
WS3 - 1.1542
Trading Outlook:
Despite the recent breakout form the Falling Wedge pattern, the rally did not last for long and the down cycle had been resumed. When this cycle scenario is confirmed by breakout above the level of 1.2000, the up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021). However, for now, the market is control by demand that might push the prices lower towards the key technical support located at 1.1599.
