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17.01.202211:05 Forex Analysis & Reviews: Technical Analysis of EUR/USD for January 17, 2022

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Technical Market Outlook

The EUR/USD pair has pulled-back towards the key short-term technical support seen at the level of 1.1386. So far the level of 38% of Fibonacci retracement was hit (1.1401) and bulls are trying to resume the rally despite the extremely overbought market conditions. The next target is the supply zone located between the levels of 1.1497 - 1.1513. This is a game changing zone and any violation of this zone will change the nearest outlook to bullish with a target at 1.1600. The nearest technical support is seen at the level of 1.1433. Please notice the current market conditions are extremely overbought, so a pull-back towards the support is very likely.

Weekly Pivot Points:

WR3 - 1.1710

WR2 - 1.1596

WR1 - 1.1513

Weekly Pivot - 1.1393

WS1 - 1.1312

WS2 - 1.1198

WS3 - 1.1117

Trading Outlook:

The market is in control by bears that pushed the price way below the level of 1.1501, so a breakout above this level is a must for bulls. The up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021) only if bullish cycle scenario is confirmed by breakout above the level of 1.1909 and 1.2000. The next important long-term target for bears is seen at the level of 1.1166.

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