Technical market overview:

As anticipated yesterday the EUR/USD pair has started the corrective sell-off towards the lower price levels. The technical support zone located between the levels of 1.1316 - 1.1324 has been hit and the price has made a new local low at the level of 1.1309 which is only 4 pips away from the 61% Fibo retracement at the level of 1.1305. The bearish pressure is still growing as the momentum is weak and negative despite the oversold market conditions. The next target for bears is at 61% Fibo at 1.1305. If this level is violated clearly, then the market will drop towards the level of 1.1275, the next important technical support. The 1.1314 is the weekly pivot support level 1 as well, so it might be a little tough for bears to break it.

Weekly Pivot Points:

WR3 - 1.1499

WR2 - 1.1457

WR1 - 1.1406

Weekly Pivot - 1.1363

WS1 - 1.1314

WS2 - 1.1271

WS3 - 1.1224

Trading Recommendations:

All sell orders from the last week should be still kept open with a target set at the level of 1.1324 and 1.1316. The main trend is still down, so this recent move up was so far only a correction in a downtrend and a failure to break through the 61% Fibo confirms this assumption.