November 6, 2020 : EUR/USD Intraday technical analysis and trade recommendations.
In July, the EURUSD pair has failed to maintain bearish momentum strong enough to move below 1.1200 (consolidation range lower zone).
Instead, bullish breakout was achieved above 1.1380-1.1400.This has lead to a quick bullish spike directly towards 1.1750 which failed to offer sufficient bearish pressure as well.
Bullish persistence above 1.1700 – 1.1760 favored further bullish advancement towards 1.1975 – 1.2000 ( the upper limit of the technical channel ) which constituted a Solid SUPPLY-Zone offering bearish pressure.
Moreover, Intraday traders should have noticed the recent bearish closure below 1.1700. This indicates bearish domination on the short-term.
However, the EURUSD pair has failed to maintain sufficient bearish momentum below 1.1625 (38% Fibonacci Level). Instead, another bullish breakout was being demonstrated towards 1.1870 which corresponds to 76% Fibonacci Level.
As mentioned in previous articles, the price zone of 1.1870-1.1900 stood as a solid SUPPLY Zone corresponding to the backside of the broken channel.
Moreover, the recent bearish H4 candlestick closure below 1.1770 was mentioned in previous articles to indicate a valid short-term SELL Signal with bearish targets already achieved at 1.1700 and 1.1630.
The current bullish pullback towards the price zone of 1.1870-1.1900 should also be considered for signs of bearish rejection and another valid SELL Entry. S/L should be placed just above 1.1810.
The material has been provided by InstaForex Company – www.instaforex.com