Technical Market Outlook
The EUR/USD pair has broken below the 61% Fibonacci retracement level seen at 1.1262 and made a new local low at the level of 1.1208 (at the time of writing the analysis). The next target for bears is seen at the level of 1.1157 and 1.1121 (January 2022 low) as the massive risk-off flows can be seen across the board. On the other hand, the key target for EUR/USD bulls is the short-term supply zone located between the levels of 1.1497 - 1.1513 and if this zone is clearly violated, then the market might continue the up move for the longer period of time. This is why this zone is so important and bears are defending the zone quite effectively. Please notice, that the bearish zone starts with the level of 1.1279.
Weekly Pivot Points:
WR3 - 1.1488
WR2 - 1.1410
WR1 - 1.1376
Weekly Pivot - 1.1327
WS1 - 1.1259
WS2 - 1.1208
WS3 - 1.1144
Trading Outlook:
The recent big Bullish Engulfing candlestick pattern seen at the weekly time frame chart indicates a strong rebound, but the market is still 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 for a trend reversal. The next long-term technical support is located at 1.1167. 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 1.1501 and 1.1599, otherwise the bears will push the price lower towards the next long-term target at the level of 1.1166.
