Technical Market Outlook:
After the EUR/USD pair has been seen testing the key short-term supply zone located between the levels of 1.1648 - 1.1665 the pair had been locked inside of a narrow consolidation zone located between the levels of 1.1624 - 1.1669. In a case of a failure to break through the supply zone, there is a possible down move continuation towards the level of 1.1624 (technical support) or 1.1572 (the key short-term technical support). Despite the overbought market conditions the momentum remains strong and positive, so it supports the short-term bullish outlook as well.
Weekly Pivot Points:
WR3 - 1.1742
WR2 - 1.1684
WR1 - 1.1640
Weekly Pivot - 1.1582
WS1 - 1.1545
WS2 - 1.1479
WS3 - 1.1445
Trading Outlook:
The market is in control by bears that pushed the prices towards the level of 1.1562, which is the lowest level since November 2020. The next target for bears is seen at the level of 1.1497. The up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021) only if bullish cycle scenario is confirmed by breakout above the level of 1.1909 and 1.2000.
