On March 20, the EURUSD pair has expressed remarkable bullish recovery around the newly-established bottom around 1.0650.
Bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.1065 (Fibo Level 50%).
However, a previous bearish Head & Shoulders pattern was demonstrated around the price zone between (1.1075-1.1150).
Shortly after, a sideway consolidation range was established in the price range extending between 1.0770 1.1000.
The price zone of (1.0815 – 1.0775) has been standing as a prominent Demand Zone providing quite good bullish support for the pair so far.
On May 14, Evident signs of Bullish rejection have been manifested around this price zone.
Moreover, recent ascending bottom has been established around 1.0870 which enhances the bullish side of the market in the short-term.
Intermediate-term technical outlook remains bullish as long as bullish persistence is maintained above the recently-established ascending bottom around 1.0850-1.0870.
Bullish breakout above 1.1000 has enhanced further bullish advancement towards 1.1175 (61.8% Fibonacci Level) then 1.1315 (78.6% Fibonacci Level) where bearish rejection was anticipated.
Although the EUR/USD pair has temporarily expressed a bullish breakout above 1.1315 (78.6% Fibonacci Level), negative divergence as well as bearish rejection were being demonstrated n the period between June 10th- June 12th.
This suggested a probable bearish reversal around the Recent Price Zone of (1.1270-1.1315) to be watched by Intraday traders.
That’s why, Bearish persistence below 1.1250-1.1240 (Head & Shoulders Pattern neckline) was needed to confirm the pattern & to enhance further bearish decline towards 1.1150
Trade recommendations :
Any bullish pullback towards the price Zone around 1.1300-1.1350 (recently-established supply zone) should be considered as a valid SELL Signal. T/P levels to be located around 1.1175 then 1.1100 while S/L to be located above 1.1390.
The material has been provided by InstaForex Company – www.instaforex.com