Technical Market Overview:

The EUR/USD pair after the recent sudden rally towards the level of 61% of the Fibonacci retracement is now pulling-back a little and consolidating the recent gains. The new local high was made at the level of 1.1109 in overbought market conditions. The momentum remains positive, but weaker now that during the rally higher. In order to continue the move higher, bulls should break through the next technical resistance located at the level of 1.1160. The nearest support is seen at the level of 1.1034.

Weekly Pivot Points:

WR3 - 1.1336

WR2 - 1.1226

WR1 - 1.1152

Weekly Pivot - 1.1040

WS1 - 1.0980

WS2 - 1.0859

WS3 - 1.0789

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 1.0926 and the technical resistance at the level of 1.1267.