Technical Market Outlook
The EUR/USD pair has been rejected from the key short-term supply zone seen at the level of 1.1222 - 1.1234 and made a new swing low at the level of 1.1089 (at the time of writing the article) as the bearish pressure intensify. The next target for bears is seen at the level of 1.1009 and the supply zone will act as the key zone for bulls in a case of a bounce. The weak and negative momentum support the bearish outlook for EUR/USD in the near time.
Weekly Pivot Points:
WR3 - 1.1620
WR2 - 1.1507
WR1 - 1.1340
Weekly Pivot - 1.1209
WS1 - 1.1053
WS2 - 1.0958
WS3 - 1.0766
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 1.1106. 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, otherwise the bears will push the price lower towards the next long-term target at the level of 1.1166.