Technical Market Outlook:

The EUR/USD pair has broken out of the consolidation zone located between the levels of 1.1991 - 1.1956 and made a new swing high at the level of 1.2071 (at the time of writing the article). Despite the extremely overbought market conditions the up trend is being continued as the momentum looks healthy, strong and positive. The next target for bulls is seen at the level of 1.2154. The level of 1.1991 will no act as the technical support for bulls. There is no indication of the up trend termination or completion yet.

Weekly Pivot Points:

WR3 - 1.2163

WR2 - 1.2070

WR1 - 1.2036

Weekly Pivot - 1.1956

WS1 - 1.1907

WS2 - 1.1827

WS3 - 1.1791

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.