Technical Market Overview:

The EUR/USD pair has tested the lower line of the ascending channel and currently, bulls are preparing to test the technical resistance located at the level of 1.1179. Despite the overbought market conditions the momentum is now clearly strong and positive, so there is still a chance for another leg up and even the breakout. The next target for bulls is seen at the level of 1.1232 and the nearest technical support is seen at the level of 1.1121.

Weekly Pivot Points:

WR3 - 1.1242

WR2 - 1.1207

WR1 - 1.1134

Weekly Pivot - 1.1103

WS1 - 1.1028

WS2 - 1.0992

WS3 - 1.0922

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 1.0999 and the technical resistance at the level of 1.1267.