Technical Analysis of EUR/USD for March 16, 2021

Technical Market Outlook:

The EUR/USD pair has been consolidating above the technical support located at the level of 1.1908 and below the local technical resistance seen at 1.1965, but if the price will not go back above the trend line, then the bears will likely continue the down move below 1.1908 towards the swing low located at 1.1837. The market is coming off the overbought conditions as well and the momentum indicator is neutral, which confirms short-term bearish outlook for EUR/USD. Moreover, the recent move down from the top located at 1.2349 is the biggest correction since March 3rd, 2020, so the price overbalance is done.

Weekly Pivot Points:

WR3 - 1.2176

WR2 - 1.2081

WR1 - 1.2020

Weekly Pivot - 1.1926

WS1 - 1.1871

WS2 - 1.1786

WS3 - 1.1716

Trading Recommendations:

Despite the recent correction to 61% Fibonacci retracement of the last wave up the long term trend on EUR/USD pair remains up on monthly time frame chart, however the weekly time frame chart show the counter-trend corrective cycle is in progress. This corrective cycle has not been completed yet, because the key level for bulls is located at 1.1608. As long as the market trades above this level the up trend is valid and all of the down waves should be used to open long positions.

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

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