Technical Market Outlook
The EUR/USD pair has bounced from the technical support seen at the level of 1.1857 and is heading back towards the supply zone. This is the key zone for bears, so if the bulls will break higher, then the next target is seen at the level of 1.1975. The momentum is strong and positive despite the extremely overbought market conditions at the H4 time frame. The daily time frame chart shows the Pin Bar candlestick formation at the top of the recent rally, so it might be a time for a pull-back soon.
Weekly Pivot Points:
WR3 - 1.2067
WR2 - 1.1974
WR1 - 1.1938
Weekly Pivot - 1.1862
WS1 - 1.1815
WS2 - 1.1732
WS3 - 1.1667
Trading Outlook:
The bulls had tested the last high made after the breakout from the Falling Wedge pattern, but so far they failed to continue the rally. 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 in control by demand that might push the prices lower towards the key technical support located at 1.1599.