Technical Market Overview:
The EUR/USD bounce has been capped at 50% Fibonacci retracement at the level of 1.1161 as anticipated and since then the bears are trying to push the prices back under the short-term trendline resistance. The momentum is just above the neutral level already and the market is in overbought conditions, but if bulls will make the next wave up anyway, then the next target is seen at the level of 1.1174. The larger timeframe trend remains down to sideways with a possibility of a rally after the Ending Diagonal triangle termination around the level of 1.0877.
Weekly Pivot Points:
WR3 - 1.1297
WR2 - 1.1248
WR1 - 1.1178
Weekly Pivot - 1.1129
WS1 - 1.1052
WS2 - 1.1011
WS3 - 1.0932
Trading Recommendations:
Not much has changed since the last week in a bigger perspective. Still, 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 1.1040 and the technical resistance at the level of 1.1267.
