Technical analysis of EUR/USD for 23/08/2019

Technical analysis of EUR/USD for 23/08/2019

Technical market overview:

The EUR/USD pair keeps trading in a narrow horizontal range, with yet another marginal local low made at the level of 1.1061. Nevertheless, it did not help the bears to push the prices lower towards the next technical support that is located at the level of 1.1034-1.1027. Any breakout below this level opens the road towards the level of 1.0950. The bulls should now defend this zone, but it does not look like they will as the bears have full control over the market. The market conditions are now extremely oversold and the momentum remains weak and negative. The larger timeframe trend remains down.

Weekly Pivot Points:

WR3 – 1.1330

WR2 – 1.1278

WR1 – 1.1161

Weekly Pivot Point – 1.1117

WS1 – 1.1003

WS2 – 1.0951

WS3 – 1.0838

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 treminated 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.

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