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

Technical Market Outlook:

The EUR/USD pair has made a new local high at the level of 1.0946 and then reversed lower afer the three wave rally had been terminated. The market participants await the NFP-Payrolls data release, so the volatility might increse soon. The big Head & Shoulders pattern on the H4 time frame chart extends the market drop the downside with a potential target seen at the level of 1.0636 (H&S measurement). The intraday technical support is seen at the level of 1.0842 and the intraday technical resistance is located at 1.0888 (100 MA).

Weekly Pivot Points:

WR3 - 1.08599

WR2 - 1.08348

WR1 - 1.08265

Weekly Pivot - 1.08097

WS1 - 1.08014

WS2 - 1.07846

WS3 - 1.07595

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.