FX.co ★ Technical Analysis of EUR/USD for December 23, 2022

Technical Market Outlook:

The EUR/USD pair had completed the ABC-X-ABC complex corrective structure and retraced 38% of the last wave down, so the market is ready for a deeper correction towards the level of 1.0508 and 1.0444. Nevertheless, the market keeps trading inside a narrow range located between the levels of 1.0663 - 1.0578 as the Euro volatility decreases significantly. The level of 1.0595 is the key intraday technical support for bulls and the level of 1.0663 will now act as the intraday technical resistance. The momentum is positive on the H4 time frame chart, so any breakout below the level of fifty would amplify the corrective cycle towards the levels provided.

Weekly Pivot Points:

WR3 - 1.07293

WR2 - 1.06733

WR1 - 1.06531

Weekly Pivot - 1.06173

WS1 - 1.05971

WS2 - 1.05613

WS3 - 1.05053

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.