09.02.202310:19 Forex Analysis & Reviews: Technical Analysis of EUR/USD for February 9, 2023

Technical Market Outlook:

The EUR/USD pair had broken below the key short-term technical support seen at the level of 1.0785 - 1.0803 and this zone will now act as technical resistance.The market made Tweezer Bottom candlestick pattern on H4 time frame chart and then Bullish Engulfing candlestick pattern occurred as well, so a potential bounce/reversal is on table now, however, the bulls are not that keen to start the aggressive cycle to the upside. The 61% Fibonacci retracement level seen at 1.0694 was tested already and the market is ready for wave B development to the upside. The weak and negative momentum on the H4 time frame chart supports the negative outlook for EUR in the mid-term, but for now a pull-back is in play.

Weekly Pivot Points:

WR3 - 1.08070

WR2 - 1.08006

WR1 - 1.07971

Weekly Pivot - 1.07942

WS1 - 1.07907

WS2 - 1.07878

WS3 - 1.07814

Trading Outlook:

Since the beginning of October 2022 the EUR/USD is in the corrective cycle to the upside, but the main, long-term trend remains bearish. This corrective cycle might had been terminated at the level of 1.1033 which is 50% Fibonacci retracement level. The EUR had made a new multi-decade low at the level of 0.9538, so as long as the USD is being bought all across the board, the down trend will continue towards the new lows.