Technical market overview:
The EUR/USD pair has almost made it to the 61% Fibo retracement, but then the Bearish Engulfing candlestick pattern occurred and the market is starting to move lower. The technical support at the level of 1.1362 has been hit and the battle for the orange trend line is still continuing. In a case of another wave down, the next technical support is seen at the level of 1.1350 and then at 1.1324. Please notice, that the momentum remains positive, but it is very close to its fifty levels, which is a border between the negative and positive territory. Moreover, the market conditions are now overbought, which further supports the short-term bearish outlook.
Weekly Pivot Points:
WR3 - 1.1473
WR2 - 1.1420
WR1 - 1.1380
Weekly Pivot - 1.1328
WS1 - 1.1280
WS2 - 1.1226
WS3 - 1.1185
Trading recommendations:
The traders should try to place the sell orders as close as possible to the level of 1.1407 (61% Fibo retracements) with a tight protective stop loss. Another good level to place the sell stop order is 1.1366. The targets for both orders would be the other side of the range at the level of 1.1316.
