Technical Market Outlook:
The EUR/USD pair has retraced 38% of the last wave down made after the Falling Wedge price pattern breakout. The bounce from the local low seen at the level of 1.2132 has hit the level of 1.2215 and is currently trading around this level. The momentum remains neutral to positive, so in a case of another wave up the next target is seen at the level of 1.2241 (50% Fibonacci retracement). Please notice the market conditions remains oversold, so in a case of a further upwards developments the key target for bulls is seen at the level of 1.2284.
Weekly Pivot Points:
WR3 - 1.2446
WR2 - 1.2395
WR1 - 1.2293
Weekly Pivot - 1.2204
WS1 - 1.2134
WS2 - 1.2082
WS3 - 1.1981
Trading Recommendations:
Since the middle of March 2020 the main trend is on EUR/USD pair has been up. This means any local corrections should be used to buy the dips until the key technical support seen at the level of 1.1609 is broken. The key long-term technical resistance is seen at the level of 1.2555. The market made the Falling Wedge trend reversal pattern around the levels of 1.2200 - 1.2300 and now the corrective cycle might have started. Any violation of the level of 1.2154 supports the trend change/corrective cycle scenario.
