Technical Analysis of EUR/USD for July 21, 2022

Technical Market Outlook: After the EUR/USD pair had bounced from the recent swing low made at the level of 0.9953 and almost retraced 50% of the last wave down, the momentum on the most traded pair had decreased and he market is trading in a narrow range ahead of the ECB interest rate decision (2:15 pm today). The recent higher high was made at the level of 1.0274, while the 50% Fibonacci retracement level is seen at 1.0282, however this level might be easily violated if the ECB suprice the market participants. The next technical resistance is seen at the level of 1.0362, the nearest technical support is located at the level of 1.0076 and 1.0000. The last biggest bounce had been capped at the supply zone seen between the levels of 1.0470 - 1.0490, since then all the bounces are shallower and used to short the EUR. The weak and negative momentum on the daily time frame supports the bearish outlook for EUR. Weekly Pivot Points: WR3 - 1.0162 WR2 - 1.0127 WR1 - 1.0107 Weekly Pivot - 1.0093 WS1 - 1.0073 WS2 - 1.0059 WS3 - 1.0025 Trading Outlook: The market continues to move lower as the down trend is still strong and the monetary parity level is the first target for bears in the long term.Nevertheless, the bullish cycle scenario is confirmed only after a breakout above the level of 1.0726, otherwise the bears will push the price lower towards the next long-term target at the level of 1.0000 or below. The up trend can be continued towards the next long-term target located at the level of 1.1186 only if the complex corrective structure will terminate soon (above 1.0000). The material has been provided by InstaForex Company - www.instaforex.com
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