Technical Market Outlook:
After the EUR/USD pair broke out of the main descending channel zone the pair made a new local high at the level of 1.1989, just below the technical resistance located at 1.1994. There is an short-term trend line support located around the level of 1.1925 and any violation of this level will lead to the test of the technical support at 1.1914 - 1.1908. The key short term technical support is located at the level of 1.1813, so please keep an eye on this level because any violation will lead to another wave down towards 1.1799 - 1.1789 zone. The weak and negative momentum supports the short-term bearish outlook as the bounce from the oversold market conditions looks completed.
Weekly Pivot Points:
WR3 - 1.2243
WR2 - 1.2176
WR1 - 1.2024
Weekly Pivot - 1.1958
WS1 - 1.1798
WS2 - 1.1738
WS3 - 1.1580
Trading Recommendations:
The long term trend on EUR/USD pair remains up on monthly time frame char, however the weekly time frame chart show the counter-trend corrective cycle is in progress. This corrective cycle has not been completed yet, because the key level for bulls is located at 1.1608. As long as the market trades above this level the up trend is valid and all of the down waves should be used to open long positions.
