FX.co ★ Technical Analysis of EUR/USD for May 17, 2023

Technical Market Outlook:

The EUR/USD keeps moving lower after the price had broke out from the Falling Wedge pattern on the H4 time frame chart and hit the lows at the level of 1.0846. The local bounce from the lows was shallow and bulls were rejected from the intraday technical resistance located at 1.0910, which is the key short-term technical resistance as well. The momentum is weak and negative again on the H4 time frame chart, so the bears have the control of the market. Please notice, that the breakout continuation to the downside from the Falling Wedge pattern should be aggressive and dynamic with a target seen at the level of 1.08232 and 1.0789 and should resume as soon as the bounce is done.

Weekly Pivot Points:

WR3 - 1.09105

WR2 - 1.08862

WR1 - 1.08762

Weekly Pivot - 1.08619

WS1 - 1.08519

WS2 - 1.08376

WS3 - 1.08133

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.