FX.co ★ Technical Analysis of EUR/USD for February 8, 2022

Technical Market Outlook

After the EUR/USD pair had been rallying and made the V-shape reversal pattern with anew swing high located at 1.1483, the market pulled-back lower towards the technical support seen at 1.1386. The next target for bulls is the key short-term supply zone located between the levels of 1.1497 - 1.1513 and if this zone is clearly violated, then the market might continue the up move for the longer period of time. The immediate technical support are seen at 1.1435 and 1.1386. The strong and positive momentum supports the short-term bullish outlook for EUR, however, the extremely overbought market conditions are the reason for a pull-back or correction towards one of the support levels.

Weekly Pivot Points:

WR3 - 1.1963

WR2 - 1.1721

WR1 - 1.1628

Weekly Pivot - 1.1393

WS1 - 1.1276

WS2 - 1.1078

WS3 - 1.0926

Trading Outlook:

The recent big Bullish Engulfing candlestick pattern seen at the weekly time frame chart indicates a strong rebound, but overall 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 1.1167. 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.