Technical analysis of EUR/USD for 06.08.2019

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The EUR/USD pair has made a short-squeeze and the new local high was made at the level of 1.1250. The market has broken above the level of 1.1181 on its way up as well and now is testing the technical support located at the level of 1.1193.

This move up is still a correction withing the larget downtrend, because the larger timeframe trend remains down and there are no signs of any trend reversal yet. The market conditions are now overbought and despite the positive momentum, the correction might start any time soon.

Weekly Pivot Points:
WR3 - 1.1304
WR2 - 1.1233
WR1 - 1.1170

Weekly Pivot - 1.1096
WS1 - 1.1037
WS2 - 1.0957
WS3 - 1.0876

Trading Recommendations:

The best strategy for the current market conditions is to trade with the larger timeframe trend, which is still down. The Ending Diagonal pattern has not been finished yet and the bears are in full control of the market. The longer-term target is seen at the level of 1.0814, from where the traders can expect a larger rebound.

Technical analysis of EUR/USD for 06.08.2019