Technical Market Outlook:
The EUR/USD pair has been rejected from the level of 1.8001 and reversed lower towards the recent low made at the level of 1.176, which is currently being tested. The momentum is weak and negative, so it looks like another wave down in progress, this time the target for bears is the level of 1.1708 (161% Fibonacci extension). Only a sustained breakout above 1.1800 would put the bulls back into temporary control over the market and expose the level of 1.1813 and 1.1835 for a test.
Weekly Pivot Points:
WR3 - 1.2060
WR2 - 1.2005
WR1 - 1.1885
Weekly Pivot - 1.1821
WS1 - 1.1671
WS2 - 1.1630
WS3 - 1.1514
Trading Recommendations:
Despite the recent correction below the 61% Fibonacci retracement of the last wave up the long term trend on EUR/USD pair remains up on monthly time frame chart, however the weekly time frame chart show the counter-trend corrective cycle is still 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.