Technical Market Outlook:
The EUR/USD pair made a new swing low at the level of 0.9810 after the FED hike the interest rate to 3.25% yesterday. This is the lower level for EUR in many years and the bears are still pushing the market lower, so all of the local pull-backs will be treated as corrective in nature. No nearest technical support in view, however, the resistance is seen at 0.9901 and 0.9934. 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 longer term down trend is reversed. Please watch the USDX as the correlation between this two markets (EUR/USD and USDX) is directly opposite.
Weekly Pivot Points:
WR3 - 1.01231
WR2 - 1.00595
WR1 - 1.00262
Weekly Pivot - 0.99959
WS1 - 0.99626
WS2 - 0.99323
WS3 - 0.98687
Trading Outlook:
Despite the recent relief rally towards the short-term support, the EUR 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. 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 for the EUR to go down.