Technical Market Outlook:
Ahead of the NFP-Payrolls data release today, the EUR/USD pair had retraced 61% of the last wave down, so the bounce from the yearly low located at the level of 1.0449 hit the level of 1.0555. The nearest technical support is seen at the level of 1.0533 and the next technical resistance is located at the level of 1.0618 and only a strong and sustained breakout above this level would change the outlook to more bullish. Please notice, that despite the ongoing pull-back, the mid-term outlook remains bearish due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart. The weak and negative momentum on the Daily time frame chart supports the bearish outlook for EUR, the momentum on the lower time frames like H4 is neutral due to the pull-back.
Weekly Pivot Points:
WR3 - 1.05916
WR2 - 1.05782
WR1 - 1.05722
Weekly Pivot - 1.05648
WS1 - 1.05588
WS2 - 1.05514
WS3 - 1.05380
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 12 weeks long now and there is no indication if the down move termination yet. There is still a room to the downside on the RSI indication on the weekly time frame as well.
