03.08.202109:23 Forex Analysis & Reviews: Technical Analysis of EUR/USD for August 3, 2021

Technical Market Outlook:

The EUR/USD pair had broken though the supply zone located between the levels of 1.1883 - 1.1895, but the rally was capped at 1.1908 anyway. The Bearish Engulfing candlestick pattern was strong enough to push the price towards the level of 1.1850 again and this level is seen as the key short-term technical support. The bulls has manage to bounce a little and the current price action might look like a Pennant price pattern. The overbought market conditions indicate a possibility of another pull-back into the zone between the levels of 1.1908 - 1.1850 before the next up wave will unfold.

Weekly Pivot Points:

WR3 - 1.2084

WR2 - 1.1997

WR1 - 1.1937

Weekly Pivot - 1.1848

WS1 - 1.1793

WS2 - 1.1703

WS3 - 1.1646

Trading Outlook:

The down trend might have been terminated and the market is ready to resume the up trend. When this cycle is scenario is confirmed by breakout above the level of 1.2000, the up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021).