FX.co ★ Technical Analysis of EUR/USD for March 4, 2021

Technical Market Outlook:

The EUR/USD bounce from a local low located at the level of 1.2015 had been capped at the level of 1.2112, which is 5 pips away from 50% Fibonacci retracement of the last wave down. Moreover, the market had made a Bearish Engulfing candlestick pattern at the top of the bounce as well, so the up move was clearly corrective in nature. The momentum is still weak and negative, which suggest the down cycle has now been completed yet. The next target for bears is the level of 1.1965. Any violation of this level will open the road towards the lows from 4th of February located at the level of 1.1953, which is the key technical support.

Weekly Pivot Points:

WR3 - 1.2341

WR2 - 1.2290

WR1 - 1.2158

Weekly Pivot - 1.2111

WS1 - 1.1978

WS2 - 1.1931

WS3 - 1.1796

Trading Recommendations:

Any local corrections should be used to buy the dips until the key technical support seen at the level of 1.1953 is broken, because since the middle of March 2020 the main trend is on EUR/USD pair has been up. The key long-term technical resistance is seen at the level of 1.2555. Any violation of the level of 1.2175 supports the trend change/corrective cycle scenario.