FX.co ★ Technical Analysis of EUR/USD for March 1, 2023

Technical Market Outlook:

The EUR/USD pair has broken above the upper line of Falling Wedge pattern located at the level of 1.0646, but so far there was no sustained breakout above the 50 MA 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 1.0623 (50 periods MA). The momentum turned to positive, but so far the bulls were not strong enough to continue the breakout.

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.