Technical Market Outlook:

The EUR/USD pair has hit the long term trend line resistance at the level of 1.2116 on the daily time frame chart and the Pin Bar/Doji candlestick had been made at the end of the rally. In result, the market pulled-back towards the local technical support seen at 1.2080 and made a new low at the level of 1.2056. Any violation of the level of 1.2035 will result in price overbalance. Please notice, the market conditions on the daily time frame chart are now overbought, so the chances for another wave up are decreasing and the pull-back or correction might start to develop soon. The next technical support is seen at the level of 1.2011 and 1.1953.

Weekly Pivot Points:

WR3 - 1.2320

WR2 - 1.2206

WR1 - 1.2167

Weekly Pivot - 1.2057

WS1 - 1.2010

WS2 - 1.1890

WS3 - 1.1850

Trading Recommendations:

The weekly time frame chart show the counter-trend corrective cycle is still in progress, but if the trend line on the daily time frame chart is violated, then the up trend might be considered done. The corrective cycle has not been completed yet, because the key level for bulls is located at 1.1608. As long as the market trades above this level the up trend is valid and all of the down waves should be used to open long positions.