FX.co ★ Technical Analysis of EUR/USD for February 28, 2023

Technical Market Outlook:

The EUR/USD pair has made another lower low at the level of 1.0534, so the potential Falling Wedge price pattern was invalidated. The price bounced towards the technical resistance located at the level of 1.0613, but so far there was no breakout yet. The market still trades below the 50 and 100 periods moving average on H4 time frame chart and the next target for bears is the technical support located at 1.0483 (key short-term technical support for bulls). The local high during the bounce was made at the level of 1.0705, so this is the key short-term technical resistance for bears and the intraday technical resistance is still located at 1.0613. The momentum remains weak and negative, so all bounces are being used by bears to sell the EUR for a better price.

Weekly Pivot Points:

WR3 - 1.06030

WR2 - 1.05759

WR1 - 1.05651

Weekly Pivot - 1.05488

WS1 - 1.05380

WS2 - 1.05217

WS3 - 1.04946

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.