Technical Market Outlook:
The EUR/USD pair has made a 1:1 correction to the level of 1.0094 (wave A is equal in length to wave B) and then reversed lower. Currently the parity level had been violated and the local low was made at the level of 0.9958. On the Daily time frame chart there is a clear Bearish Engulfing candlestick pattern visible at the 1.0094 level, so the bears are in control of this market and should built more pressure. 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. 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 - 0.99810
WR2 - 0.99177
WR1 - 0.98838
Weekly Pivot - 0.98544
WS1 - 0.98205
WS2 - 0.97911
WS3 - 0.97278
Trading Outlook:
The EUR had made a new multi-decade low at the level of 0.9538, so as long as the USD is being bought all across the board, the down trend will continue towards the new 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.
