31.10.202209:34 Forex Analysis & Reviews: Technical Analysis of EUR/USD for October 31, 2022

Technical Market Outlook:

The EUR/USD pair has made a 1:1 correction to the level of 1.0094 (wave A is equal in length to wave B) and then reversed lower. Currently the parity level had been violated and the local low was made at the level of 0.9927. On the Daily time frame chart there is a clear Bearish Engulfing candlestick pattern visible at the 1.0094 level, so the bears are in control of this market and should built more pressure. 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 (ABC corrective cycle in the down trend) until the swing high seen at 1.0389 is clearly broken. There is a chance for an impulsive wave development to the upside, how ever the level of 0.9879 can not be violated during the down move.

Weekly Pivot Points:

WR3 - 1.00027

WR2 - 0.99756

WR1 - 0.99586

Weekly Pivot - 0.99485

WS1 - 0.99315

WS2 - 0.99214

WS3 - 0.98943

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.