Technical Market Overview:
The EUR/USD pair keeps consolidating in a narrow price range just below the level of 1.1084 in overbought market conditions. The momentum is still positive but is not that strong anymore. Nevertheless, the bulls are still in control of the price and are looking for another resistance to be tested. If the level of 1.1084 is violated, then the next target for bulls is seen at the level of 1.1109. The larget timeframe trend remains down.
Weekly Pivot Points:
WR3 - 1.1148
WR2 - 1.1102
WR1 - 1.1085
Weekly Pivot - 1.1036
WS1 - 1.1017
WS2 - 1.0968
WS3 - 1.0949
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.
