FX.co ★ Technical Analysis of EUR/USD for May 7, 2021

echnical Market Outlook:

The EUR/USD pair has broken above the trend line resistance around the level of 1.2040 and made a new local high at the level of 1.2071, just below the technical resistance seen at 1.2079 . The bulls have managed to retrace 50% of the last wave down, however, the level of 1.1985 is clearly violated later, then the EUR/USD is out of the consolidation zone and might start a deeper pull-back. The target for the pull-back are 1.1927 and 1.1914. Please notice, the price is approaching the black trend line support as well, seen around the level of 1.1960. The momentum is still weak and negative, which support the short-term bearish outlook for Euro.

Weekly Pivot Points:

WR3 - 1.2222

WR2 - 1.2184

WR1 - 1.2087

Weekly Pivot - 1.2051

WS1 - 1.1952

WS2 - 1.1919

WS3 - 1.1817

Trading Recommendations:

The weekly time frame chart show the counter-trend corrective cycle is still in progress, but if the trend line on the daily time frame chart is violated, then the up trend might be considered done. The corrective cycle has not been completed yet, because the key level for bulls is located at 1.1608. As long as the market trades above this level the up trend is valid and all of the down waves should be used to open long positions.