Technical Market Outlook:
The EUR/USD pair has broken to the upside and made a new higher high at the level of 1.0696 and then pull-back was made. 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, so the last spike up might be the last wave in the current cycle. The momentum remains strong and positive, nevertheless, the market participants await the ECB interest rate decision tonight at 2:15 PM. Please stay focused during this time of the day as the market volatility might increase substantially.
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.
