FX.co ★ Technical Analysis of EUR/USD for August 23, 2023

Technical Market Outlook:

The EUR/USD pair has been seen testing the key short-term technical support located at the level of 1.0834. Any violation of this level will extend the big Head & Shoulders pattern on the H4 time frame chart to the downside, with a potential target seen at the level of 1.0636. The intraday technical resistance is seen at the level of 1.0861 (50 MA) and 1.0873. The weak and negative momentum on the H4 time frame chart supports the bearish outlook for EUR in the short-term.

Weekly Pivot Points:

WR3 - 1.09190

WR2 - 1.08998

WR1 - 1.08921

Weekly Pivot - 1.08806

WS1 - 1.08729

WS2 - 1.08614

WS3 - 1.08422

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.