FX.co ★ Technical Analysis of EUR/USD for May 29, 2023

Technical Market Outlook:

The EUR/USD pair has broken below the key technical support level seen at 1.0760 and made a new swing low at the level of 1.0707, just below the technical support seen at 1.0716. The momentum is weak and negative again on the H4 time frame chart, so the bears have the control of the market, however, the bullish divergence can be seen already. The next target for bears is seen at the level of 1.0623 and the down move should resume as soon as the pull-back is done. Please notice, the 61% Fibonacci retracement level is located at 1.0737 was clearly violated already.

Weekly Pivot Points:

WR3 - 1.07387

WR2 - 1.07284

WR1 - 1.07229

Weekly Pivot - 1.07181

WS1 - 1.07126

WS2 - 1.07078

WS3 - 1.06975

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.