21.08.202310:10 Forex Analysis & Reviews: Technical Analysis of EUR/USD for August 21, 2023

Technical Market Outlook:

The EUR/USD pair has developed a potential Head & Shoulders pattern as it is clearly seen at the H4 time frame chart. The recent breakout below the neck line around the level of 1.0962 confirms the pattern, so the outlook remains bearish. Moreover, the price has broken below the 50 DMA located at 1.0903, so the market remains under the bearish pressure. The next target for bears, measured from the swing high located at 1.1276 is located at 1.0500, but first bears need to break out below the key short-term technical support located at 1.0834. The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for EUR.

Weekly Pivot Points:

WR3 - 1.09190

WR2 - 1.08998

WR1 - 1.08921

Weekly Pivot - 1.08806

WS1 - 1.08729

WS2 - 1.08614

WS3 - 1.08422

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 be terminated at the level of 1.1286 which is 61% Fibonacci retracement level when it is hit, so please keep an eye on this level and the way the market participants (bulls and bears) will deal with it.