Technical Market Outlook:
The EUR/USD pair has made a new swing low at the level of 1.0616, but the bulls are trying to bounce above the intraday technical resistance seen at the level of 1.0672. At the beginning of the new trading week the market is locked inside the narrow trading range located between the levels of 1.0657 - 1.0640.
From the bigger point of view, the Head & Shoulders pattern on the Daily time frame chart of EUR/USD is still being developed as the price makes another lower low. Any sustained violation of the level of 1.0616 will extend the drop lower towards the projected target of the Head & Shoulders price pattern on the H4 time frame seen at 1.0550.
Weekly Pivot Points:
WR3 - 1.06744
WR2 - 1.06610
WR1 - 1.06535
Weekly Pivot - 1.06476
WS1 - 1.06401
WS2 - 1.06342
WS3 - 1.06208
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.
