Technical Market Outlook:
The EUR/USD pair has made another lower low at the level of 1.1914 (at the time of writing this article) and continues to move down towards the next target located at the level of 1.1862. This level is a 100% Fibonacci extension of the wave A to the downside, so some kind of profit taking should be expected at this level. The 61% Fibonacci retracement level of the whole last wave up is seen at 1.1887, so there is an interesting Fibonacci cluster made of those two levels. The key short term technical support is located at the level of 1.1872, so please keep an eye on this level because any violation will lead to another wave down towards 1.1799.
Weekly Pivot Points:
WR3 - 1.2243
WR2 - 1.2176
WR1 - 1.2024
Weekly Pivot - 1.1958
WS1 - 1.1798
WS2 - 1.1738
WS3 - 1.1580
Trading Recommendations:
The long term trend on EUR/USD pair remains up on monthly time frame char, however the weekly time frame chart show the counter-trend corrective cycle is in progress. This 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.