Technical Market Outlook

The EUR/USD pair has fell out of the channel around the level of 1.1314 and made a new local low at the level of 1.1263 ahead of the FOMC interest rate decision and press conference tonight. Any violation of this level will open the road towards the technical support seen at 1.1260. The key technical support is seen at the level of 1.1234 - 1.1222 (demand zone). The momentum is weak and negative, but the market conditions on the H4 time frame chart are bouncing from the extremely oversold conditions, so the test of the nearest technical resistance located at 1.3572 is possible, however the upside is limited. On the larger time frame charts, like daily and weekly, the down trend is still being continued.

Weekly Pivot Points:

WR3 - 1.1542

WR2 - 1.1486

WR1 - 1.1409

Weekly Pivot - 1.1352

WS1 - 1.1274

WS2 - 1.1218

WS3 - 1.1141

Trading Outlook:

The market is in control by bears that pushed the price way below the level of 1.1501, so a breakout above this level is a must for bulls for a trend reversal. The next long-term technical support is located at 1.1167. 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 1.1501 and 1.1599,m otherwise the bears will push the price lower towards the next long-term target at the level of 1.1166.