Technical Market Outlook:
The EUR/USD pair has made a new swing low at the level of 1.0555, so the Head & Shoulders pattern projected target had been hit. The market is ready to pull-back higher towards the technical resistance located at the level of 1.0616 and 1.0676. The key technical support is still seen at the level of 1.0517, however the daily momentum hit the extremely oversold market conditions already, so the downside might be limited. Please notice, that despite the possible pull-back, the mid-term outlook remains bearish due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart.
Weekly Pivot Points:
WR3 - 1.06744
WR2 - 1.06610
WR1 - 1.06535
Weekly Pivot - 1.06476
WS1 - 1.06401
WS2 - 1.06342
WS3 - 1.06208
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 was terminated at the level of 1.1286 which is 61% Fibonacci retracement level and the market reversed lower. The intermediate down move is 8 weeks long now and if the level of 1.0636 is broken (technical support), then the bears might extend the down move towards the level of 1.0517.