Technical Market Outlook:

The EUR/USD pair has reversed lower after touching the upper wedge line around the level of 1.1835. However, the Falling Wedge pattern is still in progress and should be terminated in a few days. The strong technical support had been established at the level of 1.1761 and the bears had failed to break through it many times already. In a case of a breakout to the upside, the next target is seen at the level of 1.1820 (the key short-term resistance) and 1.1850. The corrective cycle can be terminated if the level of 1.1883 is clearly broken. The rising momentum supports the short-term bullish outlook, but the market still trades inside of a narrow range. No major breakout yet.

Weekly Pivot Points:

WR3 - 1.1888

WR2 - 1.1859

WR1 - 1.1808

Weekly Pivot - 1.1781

WS1 - 1.1732

WS2 - 1.1699

WS3 - 1.1653

Trading Recommendations:

The down trend continues with a new swing low being made around the level of 1.1761. The key long term technical support is seen at 1.1704 and the Falling Wedge pattern is being made around this level. When this cycle is terminated, the up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021).