FX.co ★ Technical Analysis of EUR/USD for August 24, 2021

Technical Market Outlook:

The EUR/USD pair has bounced from the level of 1.1665 and retraced 61% of the last wave down. The bounce had been capped at the level of 1.1751, just below the key supply zone located between the levels of 1.1752 - 1.1760. The market conditions are oversold on the daily time frame chart, so a bounce towards the level of 1.1760 might occur before the down move resumes. Any violation of the level of 1.1665 will open the road towards the next target for bears located at 1.1612. On the other hand, only a sustained breakout above the level of 1.1760 would have change the immediate outlook to more bullish.

Weekly Pivot Points:

WR3 - 1.1899

WR2 - 1.1846

WR1 - 1.1764

Weekly Pivot - 1.1712

WS1 - 1.1624

WS2 - 1.1574

WS3 - 1.1486

Trading Outlook:

Despite the recent breakout form the Falling Wedge pattern, the rally did not last for long and the down cycle had been resumed. When this cycle scenario is confirmed by breakout above the level of 1.2000, the up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021). However, for now, the market is control by demand that might push the prices lower towards the key technical support located at 1.1599.