Technical Market Overview:
The bears are trying to regain control of the market after the Pin Bar candlestick was made, but bulls are defending the key short-term technical support located at the level of 1.1091. The market conditions are now overbought despite the positive and strong momentum, so the downtrend or correction might occur any time soon. Euro has done the Pin Bar candlestick already, so the next target for bears might be seen below the level of 1.1091 - 1.1076. If this level is violated, then the odds for the price to return to the main channel are even higher.
Weekly Pivot Points:
WR3 - 1.1388
WR2 - 1.1223
WR1 - 1.1151
Weekly Pivot - 1.0973
WS1 - 1.0899
WS2 - 1.0724
WS3 - 1.0648
Trading Recommendations:
Despite the recent strong rally on EUR/USD the best strategy for current market conditions is the same as it was for last week: 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 1.0778 and the technical resistance at the level of 1.1267.
