Technical Analysis of EUR/USD for December 5, 2023

EUR/USD Technical Analysis: Anticipating Key Market Moves

  • Ongoing Downtrend: EUR/USD sustains a bearish trend, breaching crucial support at 1.0825, with a new low at 1.0802, signaling continued downward pressure.
  • Critical Levels: Potential support at 1.0770 and a temporary halt in the H4 demand zone (1.0770 - 1.0746) indicate key levels to watch, despite oversold conditions.
  • Bullish Signall: A breakout above 1.0966 is crucial for a potential shift to a more bullish stance, with weekly pivot points and Fibonacci retracement levels providing significant markers.

Technical Market Overview:

The EUR/USD pair continues its downtrend, breaching the vital short-term support at 1.0825, marking a new local low at 1.0802 (at the time of this analysis). A breach below may drive the price to the next support at 1.0770, with a H4 demand zone between 1.0770 - 1.0746 expected to momentarily stall bearish pressures. Despite oversold conditions, negative momentum persists on the H4 chart, indicating current bearish dominance. A decisive breakout above 1.0966 is necessary for a shift to a more bullish outlook.


EUR/USD Weekly Pivot Points:

Pivot Points, crucial in technical analysis, serve to identify potential trend reversals, support, and resistance levels.

  • WR3: 1.1179
  • WR2: 1.1098
  • WR1: 1.0991
  • Weekly Pivot: 1.0910
  • WS1: 1.0803
  • WS2: 1.0722
  • WS3: 1.0615

Trading Outlook:

A breakout above the 61% Fibonacci retracement (1.0963) of the recent weekly downtrend signals a potential long-term trend reversal favoring the Euro. A weekly close beyond this level serves as the initial signal for this shift.

EUR/USD Intraday Analysis:

- Out of 22 technical indicators, 16 display a Strong Sell signal, 6 are Neutral, and 1 indicates a Buy signal.

- All 18 moving averages present a Strong Sell signal.

EUR/USD Sentiment Scoreboard:

The overall sentiment leans bullish (62% bulls vs. 38% bears). Last week's sentiment also remained bullish (57% bulls vs. 43% bears), with the sentiment over the last three days aligning as bullish as well (52% bulls vs. 48% bears).

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