Technical Market Overview:

The bounce from the level of 1.0997 which was a 61% of the Fibonacci retracement was very short-lived and terminated before the new local high has been made at the level of 1.1074. In order to continue the move up, the bulls must break through the technical resistance at the level of 1.1027 - 1.1034 and head towards the level of 1.1091 again. Otherwise, the bounce will be treated only as a local bounce inside of the corrective cycle of a lesser degree that will be used by bears to open more sell orders with a better price. The nearest technical support is located at the level of 1.0978.

Weekly Pivot Points:

WR3 - 1.1336

WR2 - 1.1226

WR1 - 1.1152

Weekly Pivot - 1.1040

WS1 - 1.0980

WS2 - 1.0859

WS3 - 1.0789

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 1.0926 and the technical resistance at the level of 1.1267.