Technical Market Overview:
After making the higher high at the level of 1.1179, the market pulled-back towards the level of 1.1139. The bulls have managed to test the upper channel line at the level of 1.1139 from above and are currently trying to continue the rally 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.
