Technical Analysis of EUR/USD for August 26, 2021

Technical Market Outlook

The EUR/USD pair has broken above the supply zone located between the levels of 1.1752 - 1.1760 and made a new local high at the level of 1.1774. The market conditions are overbought on the H4 time frame chart, so the bears might try to resume the down move, but the momentum remains strong and positive. Any violation of the level of 1.1725 will open the road towards the next target for bears located at 1.1705 and 1.1695.

Weekly Pivot Points:

WR3 - 1.1899

WR2 - 1.1846

WR1 - 1.1764

Weekly Pivot - 1.1712

WS1 - 1.1624

WS2 - 1.1574

WS3 - 1.1486

Trading Outlook:

Despite the recent breakout form the Falling Wedge pattern, the rally did not last for long and the down cycle had been resumed. When this cycle scenario is confirmed by breakout above the level of 1.2000, the up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021). However, for now, the market is control by demand that might push the prices lower towards the key technical support located at 1.1599.