Technical Overview:
The EUR/USD pair has got back to the main ascending channel and, despite the overbought market conditions, the price is hovering close to the key technical resistance located at the level of 1.1179. The momentum remains strong and positive, so a breakout higher is expected with a target seen at the level of 1.1232 - 1.1250 zones. The nearest technical support is seen at the level of 1.1126, 1.1109 and 1.1091. Only a clear breakout below the level of 1.1075 would put bears in the control of the price.
Weekly Pivot Points:
WR3 - 1.1310
WR2 - 1.1242
WR1 - 1.1209
Weekly Pivot - 1.1144
WS1 - 1.1116
WS2 - 1.1042
WS3 - 1.1010
Trading recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.0999 and the technical resistance at the level of 1.1267.
