Technical Market Outlook:
The EUR/USD pair has made a new local high at the level of 1.0927 and is only 18 pips away from the 50% Fibonacci retracement level of the big wave down. The bulls are still trying to move higher, however, there is a clear Bearish Divergence on the H4 time frame chart between the price and the momentum oscilator, so the short them outlook is slightly bearish. The German Ifo Business Climate Index data release might trigger the deeper pull-back towards the key short-term technical support seen at 1.0780.
Weekly Pivot Points:
WR3 - 1.10734
WR2 - 1.09818
WR1 - 1.09456
Weekly Pivot - 1.08902
WS1 - 1.08540
WS2 - 1.07986
WS3 - 1.0707
Trading Outlook:
Since the beginning of October 2022 the EUR/USD is in the corrective cycle to the upside, but the main, long-term trend remains bearish. The EUR had made a new multi-decade low at the level of 0.9538, so as long as the USD is being bought all across the board, the down trend will continue towards the new lows. In the mid-term, the key Fibonacci retracement level is located at 1.0945 (50% Fibonacci retracement) and only if this level is clearly violated, the down trend might be considered terminated.
