Technical Market Outlook:
The EUR/USD pair has managed to retrace almost 50% of the last wave down and hit the level of 0.9809 which is a technical resistance. The market pulled back from the Fibo level and broke below the intraday technical support seen at 0.9751 and 0.9737. Currently, the nearest technical support is located at 0.9669 and 0.9635. 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 down trend reversal is confirmed. Please watch the USDX as the correlation between this two markets (EUR/USD and USDX) is directly opposite. The mid and long-term outlook for the EUR remains bearish until the swing high seen at 1.0389 is clearly broken.
Weekly Pivot Points:
WR3 - 0.97929
WR2 - 0.97677
WR1 - 0.97547
Weekly Pivot - 0.97425
WS1 - 0.97295
WS2 - 0.97173
WS3 - 0.96921
Trading Outlook:
The EUR has been under the strong bearish pressure that broke the parity level already and as long as the USD is kept being bought all across the board, the down trend will continue towards the new multi-year lows. 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. Please notice, there is plenty of room to the downside for the EUR to go, all of the potential technical support level are very old and might not be much reliable anymore.
