Technical Market Outlook:
The EUR/USD has fallen out from the Falling Wedge pattern on the H4 time frame chart of EUR/USD and hit the local lows at the level of 1.0846. The local bounce from the lows is shallow and bulls want to test the intraday technical resistance located at 1.0910, which is the key short-term technical resistance as well. The momentum is weak and negative again on the H4 time frame chart, so the bears have the control on the market, but the market conditions are extremely oversold. Please notice, that the breakout continuation to the downside from the Falling Wedge pattern should be aggressive and dynamic with a target seen at the level of 1.08232 and 1.0789.
Weekly Pivot Points:
WR3 - 1.09105
WR2 - 1.08862
WR1 - 1.08762
Weekly Pivot - 1.08619
WS1 - 1.08519
WS2 - 1.08376
WS3 - 1.08133
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.
