Technical Market Outlook:
The EUR/USD pair has broken above the key short-term supply zone located between the levels of 1.0090 - 1.0122 and made a new local high at the level of 1.0198. In the longer term, the key technical resistance level is located at 1.0389 (swing high from August 11th), so the bulls still have a long road to take before the longer term down trend is reversed. The intraday technical support is seen at 1.0122 and 1.0090. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for EUR. Please watch the USDX as the correlation between this two is directly opposite.
Weekly Pivot Points:
WR3 - 1.01483
WR2 - 1.01150
WR1 - 1.01017
Weekly Pivot - 1.00817
WS1 - 1.00684
WS2 - 1.00484
WS3 - 1.00151
Trading Outlook:
Despte the recent relief rally towards the short-term support one, the EUR is still 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 mid-term, the key technical resistance level is located at 1.0389 and only if this level is clearly violated, the down trend might be considered terminated.
