Technical Market Overview:

The EUR/USD pair has hit the 61%Fibonacci retracement located at the level of 1.0994 and the bounce from this level made a Bullish Engulfing candlestick pattern. The bulls are fighting back and do not give up that easily, but bears are still in full control of the market and if the 61% Fibonacci retracement will not make the price to bounce higher, then the next target is seen at the level of 1.0940. Please notice, the level of 1.0999 is the key short-term technical support for the price as well, so some kind of a bounce should be expected from this level.

Weekly Pivot Points:

WR3 - 1.1256

WR2 - 1.1211

WR1 - 1.1097

Weekly Pivot - 1.1053

WS1 - 1.0934

WS2 - 1.0895

WS3 - 1.0778

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.