FX.co ★ Technical Analysis of EUR/USD for November 8, 2022

Technical Market Outlook:

The EUR/USD pair had completed the wave X connector at the level of 0.9737 and keeps moving up towards the upper channel line. It looks like the simple corrective ABC cycle might evolve into more complex and time consuming ABC-X-ABC cycle. The market is making the wave A to the upside again and is trading around the parity level after the local high was made at 1.0034. The nearest technical resistance is seen at 1.0051. 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 1.0389 (swing high from August 11th), so the bulls still have a long road to take before the down trend reversal is confirmed.

Weekly Pivot Points:

WR3 - 1.00110

WR2 - 0.99734

WR1 - 0.99541

Weekly Pivot - 0.99358

WS1 - 0.99165

WS2 - 0.98982

WS3 - 0.98606

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.