Technical Market Overview:

The EUR/USD pair has made a Shooting Star candlestick pattern around the level of 1.1174 which is a technical resistance for the price. Since then the bears have taken control of the market and pushed the price towards the lower channel boundary at 1.1128. The momentum is just above the neutral level yet 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.