08.01.202009:20 Forex Analysis & Reviews: Technical analysis of EUR/USD for 08/01/2020:

Technical Market Overview:

The EUR/USD pair has broken above the local technical resistance located at the level of 1.1174 and made a new local high at the level of 1.1205, just above the technical resistance at 1.1199. The momentum behind the move was positive but is now decreasing, so if this level is not clearly violated soon, then the bears will continue the sell-off towards the nearest technical support located at the level of 1.1106 - 1.1091. Currently, the price is moving up and down in a narrow zone between the levels of 1.1170 - 1.1133 as the traders await for a decisive breakout. The larger timeframe trend remains down.

Weekly Pivot Points:

WR3 - 1.1326

WR2 - 1.1283

WR1 - 1.1212

Weekly Pivot - 1.1166

WS1 - 1.1101

WS2 - 1.1048

WS3 - 1.0979

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 1.1040 and the technical resistance at the level of 1.1267.