Technical Analysis of EUR/USD for February 17, 2021

Technical Market Outlook:

The EUR/USD pair has reversed from 50% Fibonacci retracement of the last wave down and is currently trading below the technical support of 1.2089. The next technical support is located at the level of 1.2045 and only if this level is violated, the bears will retrace more. On the other hand, if the level of 1.2175 is clearly violated, then the next target for bulls is seen at 1.2284 level. Please notice the market is coming off the overbought market conditions on the H4 time frame chart and the momentum is way below the neutral level of 50.

Weekly Pivot Points:

WR3 - 1.2312

WR2 - 1.2233

WR1 - 1.2184

Weekly Pivot - 1.2097

WS1 - 1.2056

WS2 - 1.1971

WS3 - 1.1920

Trading Recommendations:

Any local corrections should be used to buy the dips until the key technical support seen at the level of 1.1609 is broken, because since the middle of March 2020 the main trend is on EUR/USD pair has been up. The key long-term technical resistance is seen at the level of 1.2555. Any violation of the level of 1.2175 supports the trend change/corrective cycle scenario.

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The material has been provided by InstaForex Company - www.instaforex.com