Technical Market Overview:
Despite the big Bullish Engulfing candlestick pattern in the background of the short-term EUR/USD timeframe chart, the bulls are so far unwilling to continue the rally. The last important Fibonacci retracement has been violated and the price has made another lower low at the level of 1.0965, just above the technical support located at the level of 1.0963. The corrective cycle continues with RSI indicator below its fifty levels. The key technical support is located at the level of 1.0926 and if violated, then the impulsive wave scenario will be invalidated.
Weekly Pivot Points:
WR3 - 1.1151
WR2 - 1.1121
WR1 - 1.1056
Weekly Pivot - 1.1026
WS1 - 1.0965
WS2 - 1.0930
WS3 - 1.0867
Trading recommendations:
The best strategy for current market conditions is to 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 larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.0926 and the technical resistance at the level of 1.1267.
