Technical Market Outlook:

The EUR/USD has bounced from the level of 1.1708 and continues to move towards the key short-term technical resistance located at the level of 1.1789 - 1.1799. Only a sustained breakout above this level with a daily candle close above 1.1799 would put the bulls back into control of the market expose the level of 1.1813 and 1.1835 for a test.. Otherwise, the key target for bears for this week is located at 1.1597 or below, but it all depends on US Non-Farm Payrolls data release and market reaction today.

Weekly Pivot Points:

WR3 - 1.2060

WR2 - 1.2005

WR1 - 1.1885

Weekly Pivot - 1.1821

WS1 - 1.1671

WS2 - 1.1630

WS3 - 1.1514

Trading Recommendations:

Despite the recent correction below the 61% Fibonacci retracement of the last wave up 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.