Technical Market Outlook:
The EUR/USD pair continues to move lower towards the parity level despite the extremely oversold market conditions seen on the H4 time frame chart. The nearest technical resistance is located at the level of 1.0120 and needs to be clearly violated for a solid bounce. 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 by market participants to short the EUR. Please notice the weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for EUR with a potential target seen at the level of 1.0000 and below.
Weekly Pivot Points:
WR3 - 1.0308
WR2 - 1.0280
WR1 - 1.0263
Weekly Pivot - 1.0252
WS1 - 1.0234
WS2 - 1.0222
WS3 - 1.0194
Trading Outlook:
The monetary parity level as the first target for bears in the long term had been hit and the Euro is still being under the bearish pressure. There is no sign of relief for the EUR as the down trend should continue lower after the 61% Fibonacci retracement still has not been violated. 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) and the level of 1.0726 is clearly violated.
