Technical Market Outlook:
The bulls on EUR/USD pair had missed 16 pips the 50% Fibonacci retracement level (1.0945) of the last 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 oscillator, so the short-term outlook is still bearish. Currently, the market is approaching the short-term trend line resistance seen around the level of 1.0894 and any violation of the trend line will result in another wave to the upside targeting level 1.0945. The key short-term intraday technical support 1.0784.
Weekly Pivot Points:
WR3 - 1.09496
WR2 - 1.09130
WR1 - 1.09001
Weekly Pivot - 1.08764
WS1 - 1.08635
WS2 - 1.08398
WS3 - 1.08032
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.
