Technical Market Outlook:
The EUR/USD pair has broken out from the ascending channel and made a swing high at the level of 1.0888. The breakout was dynamic, but currently the bulls are consolidating the recent gains around the swing high. The intraday technical support is seen at the level of 1.0867 and the intraday technical resistance is the swing high from 1.0888. The momentum is strong and positive, however, the market conditions are now extremely overbought on the H4 time frame chart, so a pull-back is due soon. The key short-term technical support is seen at 1.0770.
Weekly Pivot Points:
WR3 - 1.0842
WR2 - 1.0799
WR1 - 1.0742
Weekly Pivot - 1.0699
WS1 - 1.0642
WS2 - 1.0599
WS3 - 1.0542
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 18 weeks long now, but just recently the market started an internal upwards correction. The key weekly technical resistance is seen at the level of 1.0829. The RSI 14) indicator has just come back to the level of fifty.
