Technical Analysis of EUR/USD for March 17, 2021

Technical Market Outlook:

The EUR/USD pair has broken out from the consolidation zone and made a new local low at the level of 1.1882. This low was made with a Pin Bar candlestick as well, so there might be a temporary bounce back towards the technical resistance located at the level of 1.1914. If there is no breakout above this level, then the down move will likely resume lower towards the 1.1835 and below. 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 and the market might be changing the trend soon.

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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