Technical Market Outlook:
The EUR/USD pair has made a new swing low at the level of 1.0633 as anticipated, which is 3 pips below the larger time frame technical support. The market hit the extremely oversold conditions on the H4 time frame chart and now the bulls are trying to bounce, but so far no avail.
From the bigger point of view, the Head & Shoulders pattern on the H4 time frame chart of EUR/USD is still being developed as the price makes another lower low at the level of 1.0633. Any sustained violation of the level of 1.0633 will extend the drop lower towards the projected target of the Head & Shoulders price pattern on the H4 time frame seen at 1.0550. The intraday technical resistance is seen at the level of 1.0687. The next technical support is seen at the level of 1.0517.
Weekly Pivot Points:
WR3 - 1.07045
WR2 - 1.06877
WR1 - 1.06810
Weekly Pivot - 1.06709
WS1 - 1.06642
WS2 - 1.06541
WS3 - 1.06373
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 was terminated at the level of 1.1286 which is 61% Fibonacci retracement level and the market reversed lower. The intermediate down move is 8 weeks long now and if the level of 1.0636 is broken (technical support), then the bears might extend the down move towards the level of 1.0517.
