Technical Market Outlook:
The EUR/USD pair broke out from the consolidation zone located between the levels of 1.0669 - 1.0574 and made a new local low at the level of 1.0534 (at the time of writing the analysis). The momentum is weak and negative on the H4 time frame chart and market conditions are extremely oversold. The level of 1.0574 will now act as the technical resistance. The next technical support is seen 1.0444. Please notice, the market had completed the ABC-X-ABC complex corrective structure and retraced 38% of the last wave down, so the market is ready for a deeper correction towards the level of 1.0508 and 1.0444.
Weekly Pivot Points:
WR3 - 1.07581
WR2 - 1.07218
WR1 - 1.07020
Weekly Pivot - 1.06855
WS1 - 1.06657
WS2 - 1.06492
WS3 - 1.06129
Trading Outlook:
Since the beginning of October 2022 the EUR/USD is in the corrective cycle to the upside, but the main, long-term trend remains bearish. 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 Fibonacci retracement level is located at 1.0945 (50% Fibonacci retracement) and only if this level is clearly violated, the down trend might be considered terminated.
