Technical Market Outlook
The EUR/USD pair has bounced from the level of 1.1185 and is currently testing the main descending channel lower line around the level of 1.1331. Any violation of this level will open the road towards the technical resistance located at 1.1347 - 1.1375. The nearest technical support is seen at the level of 1.1263, so this level must be kept clean in order for the bounce to be successful. The strong and positive momentum supports the short-term bullish outlook for the EUR, however it does not look like a trend change or down trend termination.
Weekly Pivot Points:
WR3 - 1.1526
WR2 - 1.1423
WR1 - 1.1382
Weekly Pivot - 1.1279
WS1 - 1.1237
WS2 - 1.1137
WS3 - 1.1090
Trading Outlook:
The market is in control by bears that pushed the price way below the level of 1.1501 and 1.1360, which was the lowest level since November 2020. The next important long-term target for bears is seen at the level of 1.1166. 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.
