Technical Market Overview:
The EUR/USD has ignored the first warning sign of Shooting Star candlestick pattern and broke through the technical resistance zone located between the levels of 1.1264 - 1.1274. The bulls have managed to make a new local high at the level of 1.1305, but the rally did not last long and reversed after the Bearish Engulfing candlestick pattern was made. The move down was sudden and hit the technical support at the level of 1.1224, so the price is back under the kay technical resistance again and more downside is expected as the market conditions are overbought.
Weekly Pivot Points:
WR3 - 1.1310
WR2 - 1.1261
WR1 - 1.1211
Weekly Pivot - 1.1159
WS1 - 1.1114
WS2 - 1.1061
WS3 - 1.1012
Trading Recommendations:
The best strategy in the current market conditions is to trade in the overbought and oversold market conditions as long as the price is moving inside of the consolidation zone. Any breakout in either direction (the larger time frame trend is down) will eventually give the direction for the short-term trend move and this is when the strategy for a breakout will be applicable.
