Technical Market Outlook

The EUR/USD pair bounce from the level of 1.1185 had been capped at the key short-term resistance zone located between the levels of 1.1332 - 1.1375. The market reversed and is slowly moving lower, but so far is still trading inside the short-term ascending channel. Any violation of the lower channel line, located around the level of 1.1264, would result in a sell-off acceleration towards the level of 1.1228 and 1.1185 again. Only a sustained breakout above the 1.1332 - 1.1375 key short-term resistance zone would have change the outlook to more bullish in the nearest future.

Weekly Pivot Points:

WR3 - 1.1528

WR2 - 1.1456

WR1 - 1.1385

Weekly Pivot - 1.1307

WS1 - 1.1236

WS2 - 1.1160

WS3 - 1.1085

Trading Outlook:

The market is in control by bears that pushed the price way below the level of 1.1501 and 1.1360, which was the lowest level since November 2020. The next important long-term target for bears is seen at the level of 1.1166. The up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021) only if bullish cycle scenario is confirmed by breakout above the level of 1.1909 and 1.2000.