Since June 2018, the EUR/USD pair has been moving sideways with slight bearish tendency within the depicted bearish Channel (In RED).
On November 13, the EUR/USD demonstrated recent bullish recovery around 1.1220-1.1250 where the current bullish movement above the depicted short-term bullish channel (In BLUE) was initiated.
Bullish fixation above 1.1420 was needed to enhance further bullish movement towards 1.1520. However, the market has been demonstrating obvious bearish rejection around 1.1420 few times so far.
Further bullish advancement was expected towards the price level of 1.1550 where the upper limit of both depicted channels (RED & BLUE) was located.
However, the EUR/USD pair has lost its bullish momentum since January 31 when a bearish engulfing candlestick was demonstrated around 1.1514 where another descending high was established then.
On February 5, a bearish daily candlestick closure below 1.1420 terminated the recent bullish recovery allowing the current bearish movement to occur towards 1.1300-1.1270 where the lower limit of the depicted DAILY channel comes to meet the pair.
Trade Recommendations:
Conservative traders can look for a valid BUY entry around the current price levels (1.1285-1.1300) (lower limit of the depicted movement channel).
S/L to be located below 1.1240 while T/P level to be located around 1.1350 and 1.1420.
The material has been provided by InstaForex Company - www.instaforex.com