07.10.202208:54 Forex Analysis & Reviews: Technical Analysis of EUR/USD for October 7, 2022

Technical Market Outlook:

The EUR/USD pair had tested the parity level from below, reversed and started a corrective cycle to the downside. The nearest technical support is seen at 0.9751 and 0.9731 and the next technical resistance is seen at 0.9811 and 0.9835. The projected target for the wave C is located at the 50% Fibonacci retracement at 0.9767 and 61% Fibonacci retracement seen at 0.9713. 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. Please watch the USDX as the correlation between this two markets (EUR/USD and USDX) is directly opposite. 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 - 0.99093

WR2 - 0.98588

WR1 - 0.98328

Weekly Pivot - 0.98083

WS1 - 0.97823

WS2 - 0.97578

WS3 - 0.97073

Trading Outlook:

Despite the recent bounce, the EUR/USD market is still under the strong bearish pressure and as long as the USD is kept being bought all across the board, the down trend will continue far below the parity level, towards the new multi-year 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 down room for the EUR to go as the bears keep making a new, multi-year lows.