Technical Market Overview:
The EUR/USD pair is finally testing the key Fibonacci retracement located at the level of 1.0994. Across the way down all the bounces are very shallow and the momentum remains weak and negative despite the oversold market conditions at the H4 timeframe chart. The bears are now in full control of the market and if the 61% Fibonacci retracement will not make the price to bounce higher, then the next target is seen at the level of 1.0940. Please notice, the level of 1.0999 is the key short-term technical support for the price as well, so some kind of a bounce should be expected from this level.
Weekly Pivot Points:
WR3 - 1.1256
WR2 - 1.1211
WR1 - 1.1097
Weekly Pivot - 1.1053
WS1 - 1.0934
WS2 - 1.0895
WS3 - 1.0778
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.
