Technical Market Outlook:

The EUR/USD pair has made a new higher high at the level of 1.0737 and then pull-back was made mainly due to the big Pin Bar candle made at the top of the move. The wave v of the wave A to the upside as a part of the ABC-X-ABC complex corrective structure had been made and the market is ready for a deeper correction towards the level of 1.0533 and 1.0450. The momentum remains strong and positive on the H4 time frame chart, nevertheless, the market is coming off the extremely overbought conditions, so any breakout below the level of fifty would amplify the corrective cycle towards the levels provided.

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.