Technical Market Overview:
The EUR/USD pair has hit 61% Fibonacci retracement located at the level of 1.1072 The new local high was made at the level of 1.1084, but it did not help bulls to carry on higher as the Bearish Engulfing pattern has been made around this level and the market reversed. If bears continue to make pressure on the market, the next target for them is seen at the level of 1.0908, which is technical support at the weekly time frame.
Weekly Pivot Points:
WR3 - 1.1285
WR2 - 1.1224
WR1 - 1.1084
Weekly Pivot Point - 1.1025
WS1 - 1.0886
WS2 - 1.0818
WS3 - 1.0681
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 terminated 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. The key short-term levels are technical support at the level of 1.0814 and the technical resistance at the level of 1.1250.
