Technical Market Overview:
The EUR/USD pair is back in the descending channel and another lower low at the level of 1.0785 was made. 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 1.0772 and the immediate technical resistance is seen at the levels of 1.0832 and 1.0823. Beware of short-squeeze.
Weekly Pivot Points:
WR3 - 1.1027
WR2 - 1.0991
WR1 - 1.0896
Weekly Pivot - 1.0858
WS1 - 1.0763
WS2 - 1.0726
WS3 - 1.0633
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.
