Technical Market Overview:
The EUR/USD pair has moved lower towards the level of 1.1064 which is a 61% Fibonacci retracement. So fat the price has bounced from this level, but the bounce was immediately capped by the nearest technical resistance located at the level of 1.1087. Just above this resistance, there are others located at the levels of 1.1091, 1.1096 and 1.1106, so the bulls must put more strength into the up move. The next important technical support is located at the level of 1.1040. Although the higher timeframes trend remains bearish, the global investors must take into account, that the EUR/USD might be finally breaking up from the multi-month Ending Diagonal pattern.
Weekly Pivot Points:
WR3 - 1.1242
WR2 - 1.1207
WR1 - 1.1132
Weekly Pivot - 1.1099
WS1 - 1.1021
WS2 - 1.0984
WS3 - 1.0910
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 1.1040 and the technical resistance at the level of 1.1267.
