Daily Outlook
The EUR/USD pair remains trapped between the price levels of 1.2200 and 1.2500 until a breakout occurs in either directions.
Daily persistence above 1.2470-1.2500 was needed to confirm the recent bullish flag continuation pattern with projected targets around the price level of 1.2750.
However, significant signs of bearish reversal were manifested around the price levels of 1.2400.This was manifested in the bearish engulfing daily candlestick of April 20.
The short-term outlook turns to become bearish as long as the depicted uptrend remains broken to the downside.
The depicted Multiple-Top pattern needs a bearish breakdown of the level of 1.2200 to be achieved on a daily basis. The Bearish Projection target would be located around 1.2070-1.1990.
Trade Recommendations:
Short-term traders can wait for a pullback towards (1.2315) to have a SELL trade. S/L should be placed just above Friday's high (1.2365). T/P levels to be located around 1.2195 and 1.2080.
Risky traders can wait for bearish closure below 1.2190 as a valid SELL signal. T/P levels should be located around 1.2070-1.1990.
The material has been provided by InstaForex Company - www.instaforex.com