Technical Market Outlook:
After the EUR/USD pair had broken out of a narrow range located between the levels of 1.2160 - 1.2242 and made a new local high at the level of 1.2266, the price reversed and tested the lower levels of the consolidation zone. Still, the next target for bulls after the breakout higher is done is located at 1.2284. The market conditions are overbought and the momentum is positive, so if there is no sustained and coordinated up wave continuation above the level of 1.2242, the bears might strike back and push the prices towards the main channel lower line seen around the level of 1.2120.
Weekly Pivot Points:
WR3 - 1.2356
WR2 - 1.2298
WR1 - 1.2235
Weekly Pivot - 1.2173
WS1 - 1.2117
WS2 - 1.2059
WS3 - 1.1997
Trading Recommendations:
The daily time frame chart show the breakout above the trend line resistance and a new swing high above the recent Doji candlestick high. The momentum is strong and positive, so the up trend can be continued towards the next long-term target located at the level of 1.2241 (25.02.2021) and 1.2350 (06/01/2021).
