Technical Market Outlook
The EUR/USD pair has gaped down towards the level of 1.1157 at the beginning of the week and the bearish pressure continues. The key short-term supply zone is seen at the level of 1.1222 - 1.1234 and only a sustained breakout above this zone might be considered bullish. On the other hand, any continuation of the down move towards the level of 1.1106 would likely push the Euro lower, targeting the level of 1.1009 or below. The weak and negative momentum supports the short-term bearish outlook on EUR/USD. The volatility is limited.
Weekly Pivot Points:
WR3 - 1.1620
WR2 - 1.1507
WR1 - 1.1340
Weekly Pivot - 1.1209
WS1 - 1.1053
WS2 - 1.0958
WS3 - 1.0766
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 1.1106. 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.
