Technical Market Outlook:
The EUR/USD pair has hit the level of 1.0589, but the bulls still need to complete the wave v of the wave A to the upside as a part of the ABC-X-ABC complex corrective structure. Nevertheless, it looks like the bulls made a Double Top price pattern at the level of 1.059 and the market reversed lower. Moreover, another bearish pattern is visible on the H4 time frame chart in form of a Rising Wedge. The neutral momentum does not support the bullish outlook yet and the correction lower towards the level of 1.0444 is needed to break below the level of fifty on the RSI indicator.
Weekly Pivot Points:
WR3 - 1.05486
WR2 - 1.05312
WR1 - 1.0522
Weekly Pivot - 1.05138
WS1 - 1.05046
WS2 - 1.04964
WS3 - 1.04790
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 1.0789 (swing high from May 30th), 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.
