Technical Market Outlook:
Another attempt to rally above the 61% Fibonacci retracement had been capped after the second Bearish Engulfing pattern was made again at the H4 time frame chart. The volatility has decreased and the market is trading inside the narrow intraday range seen between the levels of 1.3523 - 1.3537. The breakout above the short-term trend line resistance is a positive signal of the bullish strength, so after the test of the trend line (around the level of 1.3475) the up move might be continued. If the bears push down harder below the trend line support, the next target is seen at the level of 1.3460 and 1.3428. The momentum remains neutral, so does the market in general.
Weekly Pivot Points:
WR3 - 1.3778
WR2 - 1.3707
WR1 - 1.3619
Weekly Pivot - 1.3549
WS1 - 1.3473
WS2 - 1.3403
WS3 - 1.3319
Trading Outlook:
The up trend is being continued, but the up move might be terminated due to the Shooting Star candlestick pattern made at the daily time frame chart at the level of 1.3717. The overall move from the level of 1.3170 looks like a V-shape reversal pattern, so in the long-term the trend might be about to change from the multi-month down trend to the up trend. Please keep an eye on the level of 1.3500, because any sustained breakout below this level will change the outlook back to the bearish again.
