Technical Market Outlook
The EUR/USD pair has almost hit the technical resistance located at the level of 1.1850, the rally was capped at the level of 1.1845 and the Bearish Engulfing candlestick pattern was made. The market conditions are still overbought, but the momentum is strong and positive, so the outlook remains bullish. The next target for bulls is seen at the level of 1.1850 and 1.1883. The immediate technical support is seen at the level of 1.1804, which is being tested now.
Weekly Pivot Points:
WR3 - 1.1957
WR2 - 1.1876
WR1 - 1.1841
Weekly Pivot - 1.1768
WS1 - 1.1735
WS2 - 1.1634
WS3 - 1.1603
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 in control by demand that might push the prices lower towards the key technical support located at 1.1599.
