Technical Market Overview:
The EUR/USD pair is currently testing the upper channel boundary around the level of 1.0977 in overbought market conditions. The bulls still have a chance for a move towards the level of 1.1024 and higher towards the level of 1.1075, but they need to break out of the descending channel. The momentum is now above its fifty levels, so it is positive and strong. There is a chance for another leg up towards the next targets, but it must be made soon, otherwise, the bears will regain the control over the market again and push the prices towards the technical support at the level of 1.0879.
Weekly Pivot Points:
WR3 - 1.1116
WR2 - 1.1087
WR1 - 1.0996
Weekly Pivot - 1.0951
WS1 - 1.0872
WS2 - 1.0826
WS3 - 1.0757
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 1.0926 and the technical resistance at the level of 1.1267.
