By the end of November, Signs of BUYING Pressure have been initiated around the depicted price zone of 1.1800-1.1840.
Shortly after, the EUR/USD pair has demonstrated a quick upside movement.The pair has targeted the price levels around 1.1990 initially which exerted considerable bearish pressure bringing the pair back towards 1.1920 which constituted a temporary KEY-Zone for the EUR/USD pair.
That's why, another episode of upside movement was expressed towards 1.2160 where a false breakout above the price level of 1.2200 was regarded as a considerable bearish reversal signal.
Two weeks ago, a short-term reversal pattern has been demonstrated around 1.2265. Intraday downside retracement to the downside was expected to occur.
However, the EUR/USD pair has failed to pursue towards lower price levels. Instead, the pair has spiked above the depicted Weekly HIGH around 1.2270 before the current bearish rejection was initiated around 1.2300.
Bearish closure below the mentioned price zone of 1.2200 - 1.2170 is needed to turn the intermediate outlook for the pair into bearish and enhance a quick bearish decline towards 1.2040 then 1.1920.
Trade Recommendations :-
Conservative traders were advised to look for SELL Positions around higher price levels near 1.2270-1.2290. Stop Loss should be lowered towards 1.2250 to secure some profits.
Target levels should be located around 1.2200, 1.2170 then 1.2120.
The material has been provided by InstaForex Company - www.instaforex.com