Technical Market Outlook
The next target for EUR/USD bulls is the key short-term supply zone located between the levels of 1.1497 - 1.1513 and if this zone is clearly violated, then the market might continue the up move for the longer period of time. This is why this zone is so important and bears are defending the zone. They made a Bearish Engulfing pattern twice already and so far the bulls are in retreat. The pull-back has hit the neutral market zone located between the levels of 1.1332 - 1.1265. The immediate technical support is seen at 1.1332. The weak and negative momentum on the H4 time frame char indicated the strong bearish pressure during the pull-back, but the market conditions are about to hit the overbought levels. The wave up could resume any time soon.
Weekly Pivot Points:
WR3 - 1.1591
WR2 - 1.1535
WR1 - 1.1426
Weekly Pivot - 1.1377
WS1 - 1.1255
WS2 - 1.1207
WS3 - 1.1092
Trading Outlook:
The recent big Bullish Engulfing candlestick pattern seen at the weekly time frame chart indicates a strong rebound, but the market is still 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.