03.02.202310:15 Forex Analysis & Reviews: Technical Analysis of EUR/USD for February 3, 2023

Technical Market Outlook:

The EUR/USD pair made a new swing high at the level of 1.1033 so the bulls managed to retrace 50% of the last big wave down. The next target is seen at 61% Fibonacci retracement located at 1.1276, but the market made a reversal towards the old range zone as the traders await the NFP Payrolls data release scheduled for 2:30pm today ( a decrease from 223k to 185k is expected). The momentum is coming off the extremely overbought market conditions and test of the level of 1.0929 support has failed as this level is now an intraday technical resistance. The next technical support is seen at the level of 1.0802 and 1.0782.

Weekly Pivot Points:

WR3 - 1.09496

WR2 - 1.09130

WR1 - 1.09001

Weekly Pivot - 1.08764

WS1 - 1.08635

WS2 - 1.08398

WS3 - 1.08032

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. 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. In the mid-term, the key Fibonacci retracement level is located at 1.0945 (50% Fibonacci retracement) and only if this level is clearly violated, the down trend might be considered terminated.