Technical Market Outlook:
The EUR/USD pair has fallen out of the Rising Wedge pattern and hit the level of 1.2132, where the long term trend line support line is located. Another wave to the downside might break below the level of 1.2154, so then the road towards the level of 1.2088 is open. The nearest technical resistance is seen at the level of 1.2177, 1.2215 and 1.2250. Weak and negative momentum supports the short-term bearish outlook for this pair. Moreover, there is a Shooting Star candlestick pattern on the Weekly time frame chart, so the market might be starting the corrective cycle inside of the up trend.
Weekly Pivot Points:
WR3 - 1.2446
WR2 - 1.2395
WR1 - 1.2293
Weekly Pivot - 1.2204
WS1 - 1.2134
WS2 - 1.2082
WS3 - 1.1981
Trading Recommendations:
Since the middle of March 2020 the main trend is on EUR/USD pair has been up. This means any local corrections should be used to buy the dips until the key technical support seen at the level of 1.1609 is broken. The key long-term technical resistance is seen at the level of 1.2555. The market made the Falling Wedge trend reversal pattern around the levels of 1.2200 - 1.2300 and now the corrective cycle might have started. Any violation of the level of 1.2154 supports the trend change/corrective cycle scenario.
