Technical Market Outlook:
The EUR/USD pair had terminated the dynamic rally towards the last swing high located at 1.0091 with a new high just a 6 pip above the high. The market is still making the wave A to the upside as a part of the ABC-X-ABC complex corrective structure and is currently pulling-back towards the parity level. The nearest technical support is seen at 1.0000 and 0.9974, so the rally should resume after one of those levels is tested. If the wave A high is violated, then the next target for bulls is projected at the level of 1.0254.
Weekly Pivot Points:
WR3 - 1.00110
WR2 - 0.99734
WR1 - 0.99541
Weekly Pivot - 0.99358
WS1 - 0.99165
WS2 - 0.98982
WS3 - 0.98606
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.
Please be aware, that any sustained breakout below the technical support seen at 0.9737 will extend the down move even more and will put the level of 0.9669 in view. 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. It looks like the simple corrective ABC cycle might evolve into more complex and time consuming ABC-X-ABC cycle.
