Technical Market Outlook:
The EUR/USD pair has made a swing high at the level of 1.1076 and this level is a yearly high as well. The bulls hit the extremely overbought market conditions on the H4 time frame chart during this move up, so now the market is in the pull-back mode. The key short-term technical support is seen at the level of 1.0974 and is being tested by bears. The next important dynamic support is seen at 1.0945 (50 MA) and 1.0896 (100 MA). The momentum is neutral on the H4 time frame chart, so the market is ready to continue the up trend towards the 1.1280, which is 61% Fibonacci retracement level of the whole, big wave down that started in January 2021.
Weekly Pivot Points:
WR3 - 1.10397
WR2 - 1.10098
WR1 - 1.09983
Weekly Pivot - 1.09799
WS1 - 1.09684
WS2 - 1.09500
WS3 - 1.09201
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. This corrective cycle might had been terminated at the level of 1.2080 which is 61% Fibonacci retracement level. 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.
