FX.co ★ Technical Analysis of EUR/USD for January 31, 2022

Technical Market Outlook

The EUR/USD made a new swing low at the level of 1.1122 despite the extremely oversold market conditions on the H4 and Daily time-frame charts. The US Dollar is still continuing the up trend as well, which does not help the bullish case on the EUR/USD at all. Due to the extremely oversold market conditions there is a bounce towards the technical resistance possible, the key supply zone is located between the levels of 1.1222 - 1.1234. Only if this zone is clearly broken the bigger correction is possible.

Weekly Pivot Points:

WR3 - 1.1479

WR2 - 1.1410

WR1 - 1.1284

Weekly Pivot - 1.1189

WS1 - 1.1030

WS2 - 1.0966

WS3 - 1.0806

Trading Outlook:

The market is 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.