Technical Market Overview:
The EUR/USD pairs have made another higher high at the level of 1.1170 after breaking out of the ascending channel. The bulls have managed to hit the technical resistance located at the level of 1.1167 and are currently testing it in very overbought market conditions. The momentum remains strong and positive, so there is still a chance for another leg up after the correction is completed. The nearest technical support is seen at the level of 1.1109 and the key technical support is still located at the level of 1.1091.
Weekly Pivot Points:
WR3 - 1.1435
WR2 - 1.1300
WR1 - 1.1250
Weekly Pivot - 1.1120
WS1 - 1.1063
WS2 - 1.0981
WS3 - 1.0893
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 1.0999 and the technical resistance at the level of 1.1267.
