Technical Overview:

The EUR/USD pair is heading lower towards the level of 1.1260 (61% Fibonacci retracement). During the last wave down the price has made a new local low at the level of 1.1275 and then bounced. The weak and negative momentum support the bearish short-term outlook, but the 61% Fibo might be a good level for a temporary pull-back higher. Nevertheless, due to the weak momentum, the outlook still favors the downside.

Weekly Pivot Points:

WR3 - 1.1462

WR2 - 1.1438

WR1 - 1.1392

Weekly Pivot - 1.1368

WS1 - 1.1333

WS2 - 1.1302

WS1 - 1.1259

Trading Recommendations:

The best strategy for the current market conditions is to buy the corrections in anticipation of the uptrend to resume. This strategy is valid as long as the level of 1.1181 is clearly violated. The larget time frame trend is still down, but there are signs of the trend reversal and the Ending Diagonal breakout to the upside.