Technical Market Overview:
After making local high at the H4 timeframe chart at the level of 1.1116, the EUR/USD market retraced most of the move up mostly due to the Bearish Engulfing candlestick pattern. Nevertheless, the bulls are trying again to break through the level of 1.1116, but so far no avail. The price might go back to the range and is currently trading around the level of 1.1100. The next technical support for bulls is seen at the level of 1.1070, which is just above the 38% Fibonacci retracement located at 1.1064. Please notice, that the momentum is coming off the highs in overbought market conditions.
Weekly Pivot Points:
WR3 - 1.1094
WR2 - 1.1060
WS3 - 1.1043
Weekly Pivot - 1.1010
WS1 - 1.0991
WS2 - 1.0960
WS3 - 1.0945
Technical 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.
