Technical Analysis of EUR/USD for August 22, 2022

Technical Market Outlook:

The beginning of the trading week does not start good for the Euro bulls. The EUR/USD pair continues to move lower towards the parity level despite the extremely oversold market conditions seen on the H4 time frame chart. The nearest technical resistance is located at the level of 1.0097 and needs to be clearly violated for a solid bounce. Please notice the weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for EUR with a potential target seen at the level of 0.9955 or even lower. The US Dollar is being bought all across the board.

Weekly Pivot Points:

WR3 - 1.0089

WR2 - 1.0057

WR1 - 1.0035

Weekly Pivot - 1.0025

WS1 - 1.0003

WS2 - 0.9992

WS3 - 0.09960

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. 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.