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

Technical Market Outlook:

The EUR/USD pair has made a new swing low at the level of 1.0636 as the down trend is still intact, but the bulls managed to made a Bullish Engulfing pattern on the H4 time frame chart and now are trying to move up to continue the pull-back. 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 immediate technical resistance is seen at the level of 1.0702. On the other hand, 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. There is no indication of the down trend to terminate or reverse yet.

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.