Technical Market Outlook:
The EUR/USD pair has been trading close to the intraday technical support located at the level of 1.1873, so any violation of this level will lead to the test of the swing low seen at 1.1835. The recent rally towards the level of 1.1994 had failed and the bears are in control of the market. Please notice, the weekly time frame chart is still showing the weakness of the bulls as the price traded below the 61% Fibonacci retracement at the level of 1.1887 already. The next key technical support is located at 1.1800 and 1.1743.
Weekly Pivot Points:
WR3 - 1.2058
WR2 - 1.2022
WR1 - 1.1948
Weekly Pivot - 1.1911
WS1 - 1.1835
WS2 - 1.1794
WS3 - 1.1716
Trading Recommendations:
Despite the recent correction to 61% Fibonacci retracement of the last wave up the long term trend on EUR/USD pair remains up on monthly time frame chart, however the weekly time frame chart show the counter-trend corrective cycle is in progress. This corrective cycle has not been completed yet, because the key level for bulls is located at 1.1608. As long as the market trades above this level the up trend is valid and all of the down waves should be used to open long positions.
