Technical Market Outlook
The EUR/USD pair has pulled-back towards the key short-term technical support seen at the level of 1.1386. So far the level of 38% of Fibonacci retracement was hit (1.1401) and bulls are trying to resume the rally despite the extremely overbought market conditions. The next target is the supply zone located between the levels of 1.1497 - 1.1513. This is a game changing zone and any violation of this zone will change the nearest outlook to bullish with a target at 1.1600. The nearest technical support is seen at the level of 1.1433. Please notice the current market conditions are extremely overbought, so a pull-back towards the support is very likely.
Weekly Pivot Points:
WR3 - 1.1710
WR2 - 1.1596
WR1 - 1.1513
Weekly Pivot - 1.1393
WS1 - 1.1312
WS2 - 1.1198
WS3 - 1.1117
Trading Outlook:
The market is in control by bears that pushed the price way below the level of 1.1501, so a breakout above this level is a must for bulls. 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. The next important long-term target for bears is seen at the level of 1.1166.
