Technical Market Outlook:
The EUR/USD pair has been continuing the big Head & Shoulders pattern on the H4 time frame chart. Recently the price reversed towards the key technical support located at the level of 1.0766 after the ABC three wave pattern had been terminated at the level of 1.0946. Any violation of the level of 1.0766 will extend the drop lower towards the level of 1.0729 and 1.0676. The intraday technical resistance is seen at the level of 1.0842 and the intraday technical support is seen at the level of 1.0766. The weak and negative momentum on the H4 time frame chart support the short-term bearish outlook for EUR.
Weekly Pivot Points:
WR3 - 1.08219
WR2 - 1.08025
WR1 - 1.07948
Weekly Pivot - 1.07831
WS1 - 1.07754
WS2 - 1.07637
WS3 - 1.07443
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 be terminated at the level of 1.1286 which is 61% Fibonacci retracement level when it is hit, so please keep an eye on this level and the way the market participants (bulls and bears) will deal with it.
