Technical Market Outlook:
The EUR/USD pair had bounced towards the level of 1.0675, but then Bearish Engulfing candlestick pattern was made at the top of the move and the market reversed below the 50 and 100 MA again on the H4 time frame chart. The nearest technical resistance is located at the level of 1.0626 and the intraday technical support is seen at the level of 1.0558. The next target for bears is the technical support located at the level of 1.0524 and 1.0496, but in order to do this, bears need to break below the intraday support. If the latter is violated, then the key short-term technical support located at the level of 1.0449 would be exposed for the test. The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook.
Weekly Pivot Points:
WR3 - 1.05822
WR2 - 1.05716
WR1 - 1.05672
Weekly Pivot - 1.05610
WS1 - 1.05566
WS2 - 1.05504
WS3 - 1.05398
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 16 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.
