Technical Market Overview:

The EUR/USD pair is not moving in any particular direction as is got stuck in a narrow range between the levels of 1.1075 - 1.0997. The big Bullish Engulfing candlestick pattern made after the ECB decision to cut the interest rates has is still in the background and this is a powerful trend reversal pattern. Nevertheless, bulls can not find the strength to impulsively move up and are visiting the 61% Fibonacci retracement for the second time now. Any clear breakout below the level of 1.0997 will open the road towards the levels of 1.0978 and 1.0965 which are technical support levels. The key technical support is located at the level of 1.0926.

Weekly Pivot Points:

WR3 - 1.1151

WR2 - 1.1121

WR1 - 1.1056

Weekly Pivot - 1.1026

WS1 - 1.0965

WS2 - 1.0930

WS3 - 1.0867

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.