FX.co ★ Technical Analysis of EUR/USD for August 18, 2023

Technical Market Outlook:

The EUR/USD pair has developed a potential Head & Shoulders pattern as it is clearly seen at the H4 time frame chart. The recent breakout below the neck line around the level of 1.0962 confirms the pattern, so the outlook remains bearish. The next target for bears, measured from the swing high located at 1.1276 is located at 1.0500, but first bears need to break out below the key short-term technical support located at 1.0834. The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for EUR.

Weekly Pivot Points:

WR3 - 1.10143

WR2 - 1.09800

WR1 - 1.09656

Weekly Pivot - 1.09457

WS1 - 1.09313

WS2 - 1.09114

WS3 - 1.08771

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 be terminated at the level of 1.1286 which is 61% Fibonacci retracement level when it is hit, so please keep an eye on this level and the way the market participants (bulls and bears) will deal with it.