Technical Market Outlook:
The EUR/USD pair has terminated the short-term counter-trend correction at the level of 1.1989 and moved back under the trend line support again. The market is consolidating above the technical support located at the level of 1.1908, but if the price will not go back above the trend line, then the bears will likely continue the down move below 1.1908 towards the swing low located at 1.1837. The market is coming off the overbought conditions as well and the momentum indicator is neutral, which confirms short-term bearish outlook for EUR/USD.
Weekly Pivot Points:
WR3 - 1.2176
WR2 - 1.2081
WR1 - 1.2020
Weekly Pivot - 1.1926
WS1 - 1.1871
WS2 - 1.1786
WS3 - 1.1716
Trading Recommendations:
Despite the recent correction to 61% Fibonacci retracement of the last wave up the long term trend on EUR/USD pair remains up on monthly time frame chart, 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.
