Technical Market Outlook:
The European Central Bank raised its key interest rates by an unprecedented 75 basis points on Thursday and promised further hikes, prioritising the fight against inflation even as the bloc is likely heading towards a winter recession and gas rationing.
In the result, the EUR/USD pair had broken above the short-term trend line resistance and is rallying higher towards the technical resistance located at 1.0090 after the ECB interest rate hike to 1.25%. In order to terminate the down trend or at least make a correction, the bulls must break above the technical resistance located at the level of 1.0090 and 1.0122. In the longer term, the key technical resistance level is located at 1.0389.
Weekly Pivot Points:
WR3 - 0.9992
WR2 - 0.99454
WR1 - 0.99156
Weekly Pivot - 0.98988
WS1 - 0.98690
WS2 - 0.98522
WS3 - 0.98056
Trading Outlook:
There is no sign of relief for the EUR as the down trend should continue below the parity level. The EUR is under the strong bearish pressure and as long as the USD is kept being bought all across the board, the down trend will continue. In the longer term, the key technical resistance level is located at 1.0389.
