Technical Market Overview:

The EUR/USD pair has made a new local high at the level of 1.1199, but then quickly reversed towards the level of 1.1106, which is the technical support for bulls. The local low was made at the level of 1.1112 and then the price bounced slightly, so it can still trade above the short-term trend line support as well (thick orange line). The bulls are still in control of the market, at least at the lower timeframes. The higher timeframes trend remains bearish, but the global investors must take into account, that the EUR/USD might be finally breaking up from the multi-month Ending Diagonal pattern.

Weekly Pivot Points:

WR3 - 1.1337

WR2 - 1.1267

WR1 - 1.1190

Weekly Pivot - 1.1121

WS1 - 1.1048

WS2 - 1.0978

WS3 - 1.0897

Trading Recommendations:

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.