Technical Market Overview:
The current price action on the EUR/USD pair looks like a pennant formation in progress, so there is still a chance for a potential move up towards the level of 1.1347 despite the overbought market conditions. The strong and positive momentum supports this short-term outlook, but the breakout above the level of 1.1250 is needed to confirm the Pennant pattern is completed. Only a sustained breakout below the level of 1.1167 would invalidate this pattern.
Weekly Pivot Points:
WR3 - 1.1304
WR2 - 1.1233
WR1 - 1.1170
Weekly Pivot - 1.1096
WS1 - 1.1037
WS2 - 1.0957
WS3 - 1.0876
Trading Recommendations:
The best strategy for the current market conditions is to trade with the larger timeframe trend, which is still down. The Ending Diagonal pattern has not been finished yet and the bears are in full control of the market. The longer-term target is seen at the level of 1.0814, from where the traders can expect a larger rebound.
