Technical Market Outlook
The EUR/USD pair has bounced again from the technical support seen at the level of 1.1804 after it felt out from the ascending channel, but the bulls are having problems to get back into the channel. The market retraced 38% of the last wave up and it might be ready to resume the up trend. The rally from the lows at 1.1665 was capped at the level of 1.1908, which is the part of the supply zone and since then the market is moving lower. The next target for bears is seen at 50% Fibonacci retracement seen at 1.1787 and 61% Fibonacci retracement seen at 1.1758. The weak and negative momentum supports the bearish short-term outlook, but the market conditions are starting to become oversold.
Weekly Pivot Points:
WR3 - 1.2067
WR2 - 1.1974
WR1 - 1.1938
Weekly Pivot - 1.1862
WS1 - 1.1815
WS2 - 1.1732
WS3 - 1.1667
Trading Outlook:
The bulls had tested the last high made after the breakout from the Falling Wedge pattern, but so far they failed to continue the rally. 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.
