FX.co ★ Technical Analysis of EUR/USD for May 8, 2023

Technical Market Outlook:

The EUR/USD pair has been seen developing the possible Falling Wedge pattern on the H4 time frame chart. The key short-term technical support is seen at the level of 1.0910 and any breakout below this level would be a bearish pressure indication. The momentum is positive on the H4 time frame chart, so the market is ready yet to continue the up trend towards the level of 1.1185 (swing high from 31st March 2022) or even towards 1.1280, which is 61% Fibonacci retracement level of the whole, big wave down that started in January 2021. Please notice, that the developing of the potential Falling Wedge pattern might take some time, but the downside breakout should be aggressive and dynamic.

Weekly Pivot Points:

WR3 - 1.11092

WR2 - 1.10728

WR1 - 1.10590

Weekly Pivot - 1.10364

WS1 - 1.10226

WS2 - 1.10000

WS3 - 1.09636

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 1.2080 which is 61% 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.