Technical Market Overview:
The Bullish Flag price pattern has been invalidated as the market has moved below the support at the level of 1.1167. The move down stopped so far at the level of 1.1138 which is a 50% Fibonacci retracement. The market conditions are now oversold, so a slight pullback can occur soon. Please notice that this time of the year the volatility might get limited due to the summer season, so it might take a while to make a breakout in this market conditions. The larget timeframe trend remains bearish.
Weekly Pivot Points:
WR3 - 1.1413
WR2 - 1.1325
WR1 - 1.1264
Weekly Pivot - 1.1187
WS1 - 1.1117
WS2 - 1.1041
WS3 - 1.0978
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is completed or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon.
