Technical Market Outlook:
The EUR/USD pair has bounced from the level of 1.1665 and retraced 61% of the last wave down. The bounce had been capped at the level of 1.1751, just below the key supply zone located between the levels of 1.1752 - 1.1760. The market conditions are oversold on the daily time frame chart, so a bounce towards the level of 1.1760 might occur before the down move resumes. Any violation of the level of 1.1665 will open the road towards the next target for bears located at 1.1612. On the other hand, only a sustained breakout above the level of 1.1760 would have change the immediate outlook to more bullish.
Weekly Pivot Points:
WR3 - 1.1899
WR2 - 1.1846
WR1 - 1.1764
Weekly Pivot - 1.1712
WS1 - 1.1624
WS2 - 1.1574
WS3 - 1.1486
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.
