Technical Market Overview:

The EUR/USD pair has bounced from the technical support located at the level of 1.1091 and bulls have managed to retrace 38% of the previous wave down as the price has hit the level of 1.1144. The bounce still looks weak as the momentum is neutral, but bulls continue to develop a wave above the short-term trendline resistance around the level of 1.1144. If they make it, then the next target is seen at the levels of 1.1162 and 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 ween 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.