Technical Market Overview:
The EUR/USD pair has made a Hammer candlestick pattern at the level of 1.1076 which is below the last local low made at the level of 1.1086. The market is in oversold conditions, so the odds for a bounce or even a trend reversal are high. The nearest target for bulls is seen at the level of 1.1106. The momentum remains weak and negative, so the current move up might be just a bounce or a local counter-trend correction. To reverse the downtrend, the bulls would have to break through the level of 1.1174.
Weekly Pivot Points:
WR3 - 1.1216
WR2 - 1.1193
WR1 - 1.1130
Weekly Pivot - 1.1046
WS1 - 1.1042
WS2 - 1.1019
WS3 - 1.0955
Trading recommendations:
Not much has changed since the last week in a bigger perspective. Still, 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.
