Technical Analysis of EUR/USD for August 16, 2022

Technical Market Outlook:

The EUR/USD pair has been seen approaching the weekly lows located close to the level of 1.0122 as the 61% Fibonacci retracement capped the bounce with the top for the corrective ABC wave located at the level of 1.0369. The nearest technical resistance is located at the level of 1.0256 and 1.0204. The last biggest bounce had been capped at the supply zone seen between the levels of 1.0470 - 1.0490, since then all the bounces are shallower and used by market participants to short the EUR. Please notice the weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for EUR.

Weekly Pivot Points:

WR3 - 1.0308

WR2 - 1.0280

WR1 - 1.0263

Weekly Pivot - 1.0252

WS1 - 1.0234

WS2 - 1.0222

WS3 - 1.0194

Trading Outlook:

The monetary parity level as the first target for bears in the long term had been hit and the Euro is still being under the bearish pressure. There is no sign of relief for the EUR as the down trend should continue lower after the 61% Fibonacci retracement still has not been violated. The up trend can be continued towards the next long-term target located at the level of 1.1186 only if the complex corrective structure will terminate soon (above 1.0000) and the level of 1.0726 is clearly violated.