Technical Market Overview:

The big Bullish Engulfing candlestick pattern made after the ECB decision to cut the interest rates is still in the background of the short-term EUR/USD timeframe chart and this is a powerful trend reversal pattern. The last important Fibonacci retracement has been violated and the price has made another lower low at the level of 1.0965, just above the technical support located at the level of 1.0963. The key technical support is located at the level of 1.0926 and if violated, then the impulsive wave scenario will be invalidated.

Weekly Pivot Points:

WR3 - 1.1151

WR2 - 1.1121

WR1 - 1.1056

Weekly Pivot - 1.1026

WS1 - 1.0965

WS2 - 1.0930

WS3 - 1.0867

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.