16.10.201907:08 Forex Analysis & Reviews: Technical analysis of EUR/USD for 16/10/2019

Technical market overview:

The EUR/USD pair has bounced from the key technical support located at the level of 1.0999 (low at the level of 1.0991) as bulls defend this support. Despite the overbought market conditions, the momentum is still strong and positive, so there is still a chance for another upwards move towards the next key technical resistance zone located between the levels of 1.1075 - 1. 1091 and even a possibility of an attack on the swing high at 1.1109. The immediate support is still located at the level of 1.0999. Please remember, that the higher timeframe trend is still bearish.

Weekly Pivot Points:

WR3 - 1.1211

WR2 - 1.1133

WR1 - 1.1093

Weekly Pivot - 1.1014

WS1 - 1.0971

WS2 - 1.0893

WS3 - 1.0849

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.