FX.co ★ Technical Analysis of EUR/USD for February 21, 2023

Technical Market Outlook:

The EUR/USD pair has broken below the technical support seen at the level of 1.0656 and made a new swing low seen at 1.0613. The market is in progress of the corrective cycle, so it still trades below the 50 and 100 periods moving average on H4 time frame chart. When the corrective cycle is done, the next target for bears is the technical support located at 1.0483. The local high during the bounce was made at the level of 1.0705, so the bounce was very shallow overall and it looks like the bears will strike soon. The momentum remains weak and negative, so all bounces are being used by bears to sell the EUR for a better price. Please keep an eye on the level of 1.0787 because this is the key short-term technical resistance.

Weekly Pivot Points:

WR3 - 1.07554

WR2 - 1.07238

WR1 - 1.07117

Weekly Pivot - 1.06922

WS1 - 1.06801

WS2 - 1.06606

WS3 - 1.06290

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.