FX.co ★ Technical Analysis of EUR/USD for May 12, 2023

Technical Market Outlook:

The EUR/USD has fallen out from the Falling Wedge pattern on the H4 time frame chart of EUR/USD and hit the local lows at the level of 1.0901. The local bounce from the lows is shallow and bulls want to test the intraday technical resistance located at 1.0943. The key short-term technical support is seen at the level of 1.0910 and any breakout below this level would accelerate the bearish pressure. The momentum is weak and negative again on the H4 time frame chart, so the bears have the control on the market. Please notice, that the breakout to the downside from the Falling Wedge pattern 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.