FX.co ★ Technical Analysis of EUR/USD for December 28, 2022

Technical Market Outlook:

The EUR/USD pair keeps trading inside a narrow range located between the levels of 1.0663 - 1.0578 as the market volatility decreases significantly. The upper range level was tested recently and the test was unsuccessful as the higher prices were rejected at 1.0663. The level of 1.0595 is the key intraday technical support for bulls and the level of 1.0663 will still act as the intraday technical resistance. Please notice, the market 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.

Weekly Pivot Points:

WR3 - 1.07098

WR2 - 1.06775

WR1 - 1.06452

Weekly Pivot - 1.06626

WS1 - 1.06303

WS2 - 1.06129

WS3 - 1.05806

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.