Technical Analysis of EUR/USD for February 3, 2022

Technical Market Outlook

The EUR/USD pair is approaching the 61% Fibonacci retracement level located at 1.1344, however the market conditions looks overbought on the H4 time-frame chart. The nearest technical support is seen at 1.1260 and 1.1285. The overall bounce looks like a V-shape reversal as well, so the bounce might be a sustained higher, even towards the swing high seen at 1.1482. The strong and positive momentum supports the short-term bullish outlook for EUR.

Weekly Pivot Points:

WR3 - 1.1479

WR2 - 1.1410

WR1 - 1.1284

Weekly Pivot - 1.1189

WS1 - 1.1030

WS2 - 1.0966

WS3 - 1.0806

Trading Outlook:

The market is in control by bears that pushed the price way below the level of 1.1501, so a breakout above this level is a must for bulls for a trend reversal. The next long-term technical support is located at 1.1167. The up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021) only if bullish cycle scenario is confirmed by breakout above the level of 1.1501 and 1.1599,m otherwise the bears will push the price lower towards the next long-term target at the level of 1.1166.