Technical Market Overview:
For the last 10 days and almost two weeks, the EUR/USD pair has been moving is of the descending channel and had been making consecutive lower lows every day. The last one was made at the level of 1.0830 as anticipated. All the bounces after the sell-offs had been shallow, so the bearish pressure is still high despite the extremely oversold market conditions. The momentum is still weak and negative and there is no indication of any trend reversal yet. The next target for bears is seen at the level of 1.0778 and the immediate technical resistance is seen at the levels of 1.0879 and 1.0885. Beware of short-squeeze.
Weekly Pivot Points:
WR3 - 1.1168
WR2 - 1.1131
WR1 - 1.1018
Weekly Pivot - 1.0976
WS1 - 1.0860
WS2 - 1.0819
WS3 - 1.0703
Trading Recommendations:
The best strategy for current market conditions is the same as it was for recent months: 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 larger timeframes like weekly, which indicates a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.0981 and the technical resistance at the level of 1.1267.
