Technical Market Overview:
The EUR/USD pair has tested the local technical sup[port located at the level of 1.1091, but the bounce from this level did not make it over the resistance at the level of 1.1109. The volatility has slightly increased and the bearish activity is more visible. The market is still trading inside of the channel, the momentum is now slightly negative, but 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.
