Technical market overview:
After making the new local high at the level of 1.1062, the EUR/USD pair pulled back to the nearest technical support located at the level of 1.1013 and is currently consolidating around it. Despite the overbought market conditions, the momentum is still strong and positive, so there is still a chance for another upwards move towards the next key technical resistance zone located between the levels of 1.1075 - 1. 1091 and even a possibility of an attack on the swing high at 1.1109. The immediate support is located at the level of 1.0999. Please remember, that the higher timeframe trend is still bearish.
Weekly Pivot Points:
WR3 - 1.1211
WR2 - 1.1133
WR1 - 1.1093
Weekly Pivot - 1.1014
WS1 - 1.0971
WS2 - 1.0893
WS3 - 1.0849
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.
