FX.co ★ Technical Analysis of EUR/USD for October 16, 2023

EUR below the trend line support

Technical Market Outlook:

The EUR/USD pair has broken below the trend line support and below the 50 and 100 MA level, so the down trend might be resumed. The nearest technical support is seen at the level of 1.0496 and the nearest technical resistance is located at the level of 1.0559. The next target for bulls is the swing high from 20th September located at 1.0735. Despite the ongoing pull-back, the mid-term outlook remains negative due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart. The weak and negative momentum on the Daily and H4 time frame chart supports the bearish outlook for EUR with the potential target seen at the level of 1.0452.

Weekly Pivot Points:

WR3 - 1.05460

WR2 - 1.05343

WR1 - 1.05298

Weekly Pivot - 1.05226

WS1 - 1.05181

WS2 - 1.05109

WS3 - 1.04992

Trading Outlook:

Since the beginning of October 2022 the EUR/USD is in the corrective cycle to the upside, but the main, long-term trend remains bearish. This corrective cycle was terminated at the level of 1.1286 which is 61% Fibonacci retracement level and the market reversed lower. The intermediate down move is 12 weeks long now and there is no indication if the down move termination yet. There is still a room to the downside on the RSI indication on the weekly time frame as well.