On January 10th, the market initiated the depicted bearish channel around 1.1570.
Since then, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.
Few weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200.
This enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where significant bearish rejection was demonstrated on April 15.
Short-term outlook turned to become bearish towards 1.1235 (78.6% Fibonacci) then 1.1175 (100% Fibonacci level).
For Intraday traders, the price zone around 1.1235 (78.6% Fibonacci) stood as a temporary demand area which paused the ongoing bearish momentum for a while before bearish breakdown could be executed on April 23.
On May 13, another bullish pullback was executed towards the mentioned price zone (1.1230-1.1250) where the current bearish movement was initiated.
For the past few weeks, the EURUSD pair has been trapped above the next demand-zone (1.1175) until last Friday when a bearish breakdown below 1.1175 was temporarily achieved.
As expected, further bearish decline was expected towards 1.1115. This is where significant bullish recovery was demonstrated by the end of Yesterday's consolidations. This brought the pair back above 1.1175 (previous weekly low).
Currently, The EURUSD pair remains trapped between the depicted price zones (1.1175-1.1235) with recent bullish tendency until a definitive range-breakout occurs in either direction.
Trade recommendations :
Intraday traders can look for a counter-trend BUY entry upon the recent bullish breakout anywhere around the price level of 1.1175.
T/P level to be located around 1.1240. Stop loss should be placed below 1.1150.
The material has been provided by InstaForex Company - www.instaforex.com