Technical Market Outlook:

The EUR/USD pair has made a Shooting star candlestick pattern at the top of the bounce from the level of 1.1703. The local high was made at the level of 1.1914 and the marked returned back under the 61% Fibonacci retracement located at 1.1879. The blow off high is now the key indication that the bearish pressure is getting stronger and market can come off the overbought conditions any time soon. The next technical support is located at the level of 1.1835 and 1.1799. Any violation of the level of 1.1789 will likely resume the short-term down trend below the level of 1.1703.

Weekly Pivot Points:

WR3 - 1.1890

WR2 - 1.1841

WR1 - 1.1801

Weekly Pivot - 1.1751

WS1 - 1.1713

WS2 - 1.1661

WS3 - 1.1641

Trading Recommendations:

Despite the recent correction, the long term trend on EUR/USD pair remains up on monthly time frame chart, however the weekly time frame chart show the counter-trend corrective cycle is still in progress. This corrective cycle has not been completed yet, because the key level for bulls is located at 1.1608. As long as the market trades above this level the up trend is valid and all of the down waves should be used to open long positions.