Technical Market Outlook:
The EUR/USD pair has made a swing high at the level of 1.1076 and after the bulls hit the extremely overbought market conditions on the H4 time frame chart, the pull-back has started. The key short-term technical support seen at the level of 1.0974 has been violated, so now it will act as the intraday technical resistance. The next important dynamic support is seen at 1.0945 (50 MA) and 1.0896 (100 MA) and this is where the market is trading now. The momentum is negative on the H4 time frame chart, so the market is not ready to continue the up trend towards the 1.1280, which is 61% Fibonacci retracement level of the whole, big wave down that started in January 2021.
Weekly Pivot Points:
WR3 - 1.10397
WR2 - 1.10098
WR1 - 1.09983
Weekly Pivot - 1.09799
WS1 - 1.09684
WS2 - 1.09500
WS3 - 1.09201
Trading Outlook:
Since the beginning of October 2022 the EUR/USD is in the corrective cycle to the upside, but the main, long-term trend remains bearish. This corrective cycle might had been terminated at the level of 1.2080 which is 61% Fibonacci retracement level. The EUR had made a new multi-decade low at the level of 0.9538, so as long as the USD is being bought all across the board, the down trend will continue towards the new lows.