Technical Market Outlook:
The EUR/USD pair has made a new local high at the level of 1.1090 which is the key short-term technical resistance for bulls. The market moved out of a narrow ascending channel during the move up and is trading just above the upper channel line. Please notice the market bounced from extremely oversold conditions on the H4 time frame chart and momentum is now positive and points to the north. The larger time frame downtrend continues, but the odds for a bounce continuation are now high.
Weekly Pivot Points:
WR3 - 1.1581
WR2 - 1.1403
WR1 - 1.0979
Weekly Pivot - 1.0796
WS1 - 1.0386
WS2 - 1.0200
WS3 - 0.9765
Trading Recommendations:
The downtrend is still a valid trend as long as the level of 1.1540 is clearly violated. All upward moves will be treated as local corrections in the downtrend. The long-term target for bears is seen at the level of 1.0339 and the long-term target for bulls is a new high above the level of 1.2555.
