Technical Market Overview:
The EUR/USD pair has almost hit the key technical support located at the level of 1.0990 as the lows during the move down was made at the level of 1.0993. The bounce is shallow so far, so the downtrend continuation might resume any time soon. The weak and negative technical resistance together with weak stochastic oscillator support the near-term bearish outlook. The next target for bears is then seen at the level of 1.0940, but the key long term technical support is still located at the level of 1.0849.
Weekly Pivot Points:
WR3 - 1.1243
WR2 - 1.1163
WR1 - 1.1138
Weekly Pivot - 1.1062
WS1 - 1.1035
WS2 - 1.0960
WS3 - 1.0930
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.
