FX.co ★ Technical Analysis of EUR/USD for February 6, 2023

Technical Market Outlook:

The EUR/USD pair made a new swing high at the level of 1.1033, so the bulls managed to retrace 50% of the last big wave down and since then the market keeps moving lower. The bears are testing the key short-term technical support seen at the level of 1.0785 - 1.0803 and any violation of this zone would likely result in another extension to the downside. The 50% Fibonacci retracement level is seen at 1.0760 and 61% Fibonacci retracement level is seen at 1.0694. The weak and negative momentum on the H4 time frame chart supports the negative outlook for EUR.

Weekly Pivot Points:

WR3 - 1.08070

WR2 - 1.08006

WR1 - 1.07971

Weekly Pivot - 1.07942

WS1 - 1.07907

WS2 - 1.07878

WS3 - 1.07814

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 1.1033 which is 50% 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.