Technical Analysis of EUR/USD for August 27, 2021

Technical Market Outlook

The EUR/USD pair has broken above the supply zone located between the levels of 1.1752 - 1.1760 and made a new local high at the level of 1.1779. Nevertheless, the market conditions are overbought on the H4 time frame chart, so the bears might try to resume the down move, despite the fact, that the momentum remains strong and positive. There is the Pin Bar candlestick made already at the end of the rally, so the bears are active on this levels. Any violation of the level of 1.1725 will open the road towards the next target for bears located at 1.1705 and 1.1695.

Weekly Pivot Points:

WR3 - 1.1899

WR2 - 1.1846

WR1 - 1.1764

Weekly Pivot - 1.1712

WS1 - 1.1624

WS2 - 1.1574

WS3 - 1.1486

Trading Outlook:

Despite the recent breakout form the Falling Wedge pattern, the rally did not last for long and the down cycle had been resumed. When this cycle 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). However, for now, the market is control by demand that might push the prices lower towards the key technical support located at 1.1599.

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The material has been provided by InstaForex Company - www.instaforex.com

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