Technical Overview:
The EUR/USD pair has made a new local low at the level of 1.1055 after the bulls failed to rally above the level of 1.1091. The market reversed and bears pushed the price towards the key short term technical support located at 1.1024, just above the 50% Fibonacci retracement located at 1.1029. The momentum is weak and negative, so the next target for bears is seen at the level of 1.1024 itself and even 1.0999. The larger timeframe trend remains bearish.
Weekly Pivot Points:
WR3 - 1.1310
WR2 - 1.1242
WR1 - 1.1209
Weekly Pivot - 1.1144
WS1 - 1.1116
WS2 - 1.1042
WS3 - 1.1010
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 1.0999 and the technical resistance at the level of 1.1267.
