Technical Market Outlook:
The EUR/USD pair has broken above the wave A high located at the level of 1.0000 and made a new local high at the level of 1.0091. The bulls wait for the ECB interest rate decision that is scheduled for release at 14:15 today in order to continue the rally higher despite the extremely overbought market conditions. 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.
The material has been provided by InstaForex Company – www.instaforex.com
