Technical Market Overview:

The EUR/USD pair had retraced 50% of the last wave up after the series of Pin Bar candlestick patterns were made around the level of 1.1497. This signal and a clear bearish divergence between the price and momentum oscillator in overbought market conditions resulted in a move lower. The next target for bears is seen at 61% of Fibonacci retracement located at the level of 1.1248. The nearest technical resistance is seen at the level of 1.1361 and 1.1406.

Weekly Pivot Points:

WR3 - 1.1782

WR2 - 1.1563

WR1 - 1.1471

Weekly Pivot - 1.1255

WS1 - 1.1146

WS2 - 1.0916

WS3 - 1.0820

Trading Recommendations:

The downtrend was valid as long as it was terminated or the level of 1.1445 clearly violated, so now all upward moves will not be treated as local corrections in the downtrend, but as a new uptrend. The Ending Diagonal price pattern visible on the larger timeframes like weekly has been completed and the EUR/USD is developing a new wave up.