Technical Market Overview:

The EUR/USD pair is currently testing the lower ascending channel boundary located around the level of 1.1075. This level is the technical support for the bulls as well, so any violation of this level will open the road towards the next technical support locates at the level of 1.1024. The volatility has slightly increased and the bearish activity is more visible. The market is still trading inside of the channel, the momentum is now slightly negative, but there is still a chance for another leg up after the correction is completed.

Weekly Pivot Points:

WR3 - 1.1242

WR2 - 1.1207

WR1 - 1.1134

Weekly Pivot - 1.1103

WS1 - 1.1028

WS2 - 1.0992

WS3 - 1.0922

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.