Technical Market Overview:
The EUR/USD pair has made another lower low at the level of 1.1009, but this time the bears might have started forming an Ending Diagonal pattern. The market conditions are extremely oversold on the H4 timeframe chart, but due to the weak and negative momentum that is still hovering below its fifty level, the odds for another leg down are still high. The next target for bears is seen at the level of 1.0990 - 1.0981 zone. The immediate technical resistance is seen at the level of 1.1040 and 1.1065.
Weekly Pivot Points:
WR3 - 1.1171
WR2 - 1.1139
WR1 - 1.1072
Weekly Pivot - 1.1044
WS1 - 1.0977
WS2 - 1.0946
WS3 - 1.0872
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.
